Asian shares battered after traders fret about recession after US CPI

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Equities battle after release of white hot US inflation data, which fuelled the fear the Fed will raise interest rates even more aggressively

The Exchange Square Complex, which houses the Hong Kong Stock Exchange, in Hong Kong on July 13 2022. Picture: BLOOMBERG/PAUL YEUNG

Japan’s Nikkei bucked the trend by rising 0.6%, helped by the yen’s weakness against the dollar boosting exporters. Market pricing on the CME’s Fedwatch tool currently indicates a 78% chance of a 100 basis increase, though Oliver said this could be a knee-jerk reaction to the high CPI reading. US two-year yields, which reflect interest rate expectations, were last at 3.121%, just off an overnight four-week high, increasing their lead on US benchmark 10 year yields which were at 2.9558%.

Singapore’s central bank also tightened its monetary policy on Thursday, in an off-cycle move hoping to slow inflation, sending the local currency up 0.7%.

 

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