By Zhang Mengying
Investment.com – Asia Pacific stocks rose on Thursday morning, boosted by US Federal Reserve Chairman Jerome Powell’s comments that further super-sized interest rate hikes are rare. after the central bike company made its biggest interest rate hike since 1994.
Japan was up 1.58% by 10:48 PM ET (2:48 AM GMT).
South Korea increased 1.45%.
In Australia, an increase of 0.54%.
Hong Kong’s fell 0.17%.
China’s increased 0.28% while China’s increased 0.47%.
The Fed raised interest rates by 75 basis points on Wednesday to cool inflation following an 8.6% year-on-year increase in May. The central bank is expected to make another big rally in July, but Jerome Powell said, “Today’s 75 basis point increase is an unusually large one and I don’t expect such moves.” on this scale is common.”
The Fed also said it would shrink its balance sheet to $47.5 billion a month, starting June 1, and raising it to $95 billion in September.
“75 basis points is a sure sign that willpower, all equal, will help improve the credibility of the Fed and cause monetary policy to fall slightly below the inflation curve,” strategists said. of BMO Capital Markets, Benjamin Jeffery and Ian Lyngen said in a note.
“The reaction of risk assets will ultimately determine the extent to which the Fed can normalize monetary policy.”
Investors are worried about slower economic growth due to tightening policies. US Treasury yields surged in one of the biggest sell-offs in decades and global stocks entered a bear market.
“The volatility in the bond market is certainly not over yet,” Credit Suisse head of private banking and portfolio manager Jasmin Argyrou told Bloomberg.
“The possibility is that interest rate policy in the US may need to take a more restrained stance than even the market is pricing in.”
Investors are now awaiting policy decisions that are due at the end of the day. The will also makes its policy decisions on Friday.
In terms of data, and due at the end of the day.