Fed policy a risk for Asia's recovery
2 years, 9 months ago

Fed policy a risk for Asia's recovery

China Daily  

Editor's note: The US Federal Reserve makes decisions with the sole aim of boosting the US economy. Interest rate hikes in the US have significant impacts on Asian economies through trade, exchange rate, and financial market channels. In fact, empirical evidence shows that local interest rates in Asian developing economies respond to short-term US rates in a strongly positive manner regardless of existing exchange rate regimes. Although emerging market economies are expected to navigate increasingly turbulent waters, an immediate challenge for the Asian region is to strengthen macro prudential surveillance and preempt new sources of financial instability. The Asian region also needs to accelerate local currency bond and capital market development to reduce its reliance on external debt financing and improve financial resilience.

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History of this topic

Fed Forces Asia To Choose: Accept Weaker Currencies or Push Back
3 weeks, 2 days ago

Fed Forces Asia To Choose: Accept Weaker Currencies or Push Back

Live Mint  

-- Central banks across Asia face a difficult decision after the Federal Reserve’s hawkish cut — stage a costly fight back against dollar strength, or stand by and watch their currencies falter. “It is hard to fight the higher dollar move against Asian currencies when it is primarily dollar driven, which means regional central banks would have to play defence …

Rupee slips to record low but central bank steps in to curb losses
4 weeks, 2 days ago

Rupee slips to record low but central bank steps in to curb losses

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 12 - The Indian rupee declined to its all-time low on Thursday, pressured by dollar bids in the non-deliverable forwards market and from importers while intervention by the central bank kept a lid on losses, traders said. Heightened dollar demand in the NDF market alongside strong dollar buying by local importers, including oil companies, have …

Stock market today: Asian shares gain after US Fed cuts interest rates
2 months ago

Stock market today: Asian shares gain after US Fed cuts interest rates

The Independent  

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Central Banks' Reserves Offer Shield as Dollar's Strength Contributes to Asian Pressure
2 months, 1 week ago

Central Banks' Reserves Offer Shield as Dollar's Strength Contributes to Asian Pressure

Live Mint  

A $6.4 trillion FX reserve pile in Asia is providing central banks with ammunition to fight the dollar's strength stemming from the US presidential election. The reserve pile gives Asian economies a buffer against capital outflows and constraints to their monetary policy room. However, strategists expect losses in Asian currencies if Trump returns to power and reignites a trade war.

Asian stocks follow Wall Street's rate-cut rally higher, as BOJ stands pat
3 months, 3 weeks ago

Asian stocks follow Wall Street's rate-cut rally higher, as BOJ stands pat

The Independent  

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Experts urge policy steps to help recovery
4 months ago

Experts urge policy steps to help recovery

China Daily  

A cashier counts RMB notes in a bank in Haian, Jiangsu province. During a news conference on Thursday, Zou Lan, head of the monetary policy department of the People's Bank of China, the country's central bank, said that the current average RRR of financial institutions — the proportion of deposits they must keep as reserves — is about 7 percent, …

On monetary policy and financial markets
5 months ago

On monetary policy and financial markets

The Hindu  

Global financial markets may be exhibiting recovery following the dramatic falls in value, but the global economy is still in uncharted waters. The Bank of Japan’s decision to raise interest rates after years of keeping them low has also rattled financial markets, setting off a reversal of equity flows and a collapse in Asian markets. The carry trade On the …

'Risk of major financial fallout' as IMF sounds the alarm on persistent global inflation
5 months, 3 weeks ago

'Risk of major financial fallout' as IMF sounds the alarm on persistent global inflation

ABC  

The message seems to have been lost in all the noise. The biggest risk is that higher American interest rates "disrupt capital flows and impede planned monetary policy easing, which could adversely impact growth". Even worse, "persistently high interest rates could raise borrowing costs further and affect financial stability if fiscal improvements do not offset higher real rates amid lower …

Stock market today: Asian markets wobble after Fed sticks with current interest rates
8 months, 1 week ago

Stock market today: Asian markets wobble after Fed sticks with current interest rates

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Asian markets wobbled in Thursday …

Stock market today: Asian shares are mixed. Japan’s central bank keeps its monetary policy unchanged
1 year ago

Stock market today: Asian shares are mixed. Japan’s central bank keeps its monetary policy unchanged

Associated Press  

BANGKOK — Asian shares were mixed Tuesday after a seven-week winning streak on Wall Street cooled. Tokyo’s Nikkei 225 index gained 0.9% to 33,063.00 after the Bank of Japan kept its ultra-lax monetary policy unchanged, as expected. The broader market surged last week and added to solid December gains after the Federal Reserve signaled that inflation may have cooled enough …

Dollar’s Resurgence Is a Headache for the Rest of the World
1 year, 3 months ago

Dollar’s Resurgence Is a Headache for the Rest of the World

Live Mint  

The dollar bounced back with a vengeance in the third quarter, threatening global central bankers’ tricky task of bringing down inflation while protecting fragile economic growth. “The markets have consistently tried to price in rosy scenarios which were associated with a weaker dollar and they continue to be surprised that the reality isn’t quite as rosy,” said Maurice Obstfeld, former …

Stock market today: Asian markets are mostly lower as oil prices push higher
1 year, 4 months ago

Stock market today: Asian markets are mostly lower as oil prices push higher

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Crude oil prices pushed higher, …

Stock market today: Asian shares mostly lower on looming worry over US banks, China growth
1 year, 7 months ago

Stock market today: Asian shares mostly lower on looming worry over US banks, China growth

India TV News  

Stock Market: Asian shares were mostly lower on Friday on looming worries over US banks and lagging demand from China, the region's major driver of growth. Japan's benchmark Nikkei 225 gained 0.9 per cent in morning trading to 29,393.24 as companies like Nissan Motor Co. gained after reporting relatively favourable earnings. Hong Kong's Hang Seng was virtually unchanged at 19,746.09, …

IMF urges Asian central banks to maintain monetary policy ‘tighter for longer’ to tackle inflation risks
1 year, 8 months ago

IMF urges Asian central banks to maintain monetary policy ‘tighter for longer’ to tackle inflation risks

Firstpost  

The IMF expects growth in the Asia-Pacific region’s economy at 4.6 per cent this year, up 0.3 points from its October forecast and faster than a 3.8 per cent rise in 2022 Washington: According to senior International Monetary Fund official Krishna Srinivasan, Asian central banks may need to maintain monetary policy “tighter for longer” to tackle the region’s persistently high …

China's rebound will be positive for world economy, offset Fed risks
1 year, 10 months ago

China's rebound will be positive for world economy, offset Fed risks

China Daily  

A view of Beijing's CBD area on Aug 19, 2022. The US' annual inflation rate, which had soared close to 10 percent in summer last year, slowed, but slightly, to 6.4 percent in January, although the interest rate has been hiked to almost 5 percent. Despite the media hysteria in the West, China's annual inflation rate rose to only 2.1 …

Asia stocks fall after Fed says more US rate hikes likely
2 years, 2 months ago

Asia stocks fall after Fed says more US rate hikes likely

Associated Press  

BEIJING — Asian stock markets tumbled Thursday after the Federal Reserve added to recession fears by saying it wasn’t finished raising U.S. interest rates to cool inflation. Shanghai, Seoul and Sydney also followed Wall Street lower after the Fed on Wednesday raised its key rate to the highest level in 15 years. Wall Street’s benchmark S&P 500 index plunged 2.5% …

India should choose fiscal, monetary policy carefully to support ‘bright spot’ growth forecast: IMF
2 years, 2 months ago

India should choose fiscal, monetary policy carefully to support ‘bright spot’ growth forecast: IMF

The Hindu  

Even as it praised India’s growth rate forecasts of 6.8% in FY22-23 and 6.1% in FY23-24, the International Monetary Fund cautioned that there was limited policy space given overall global conditions. With downgrades in growth forecasts from June, and a slowdown predicted next year, a growth rate next fiscal year of 6.1% for India was “still a bright spot”, Anne-Marie …

Fed attacks inflation with another big hike and expects more
2 years, 3 months ago

Fed attacks inflation with another big hike and expects more

Hindustan Times  

Intensifying its fight against high inflation, the Federal Reserve raised its key interest rate Wednesday by a substantial three-quarters of a point for a third straight time and signaled more large rate hikes to come — an aggressive pace that will heighten the risk of an eventual recession. Fed officials have said they’re seeking a “soft landing,” by which they …

Asian stocks down after US inflation fuels rate hike fears
2 years, 5 months ago

Asian stocks down after US inflation fuels rate hike fears

Associated Press  

BEIJING — Asian stock markets rose Thursday despite a record-setting U.S. inflation report that pointed to more possible interest rate hikes that investors worry will chill economic growth. Wall Street’s benchmark S&P 500 index lost 0.4% on Wednesday after data showed U.S. consumer inflation accelerated to 9.1% in June over a year earlier from May’s 8.6%. Investors worry aggressive action …

Asian markets mostly lower in cautious trading; bitcoin price steady at $20,000
2 years, 6 months ago

Asian markets mostly lower in cautious trading; bitcoin price steady at $20,000

Firstpost  

Shares fell in most Asian markets but rose in Hong Kong and India as worries over inflation and risks of a global recession from central bank efforts to bring it under control appeared to outweigh Wall Street’s mostly positive close on 17 June, 2022 Tokyo: Asian markets were mostly lower Monday in cautious trading, while the price of bitcoin remained …

Asian stocks sink amid US CPI hike, Covid-19 scare from China
2 years, 6 months ago

Asian stocks sink amid US CPI hike, Covid-19 scare from China

Live Mint  

Asian stocks sank on Monday and bond yields ticked higher, as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth. Beijing's most populous district of Chaoyang announced on Sunday three rounds of mass testing to quell a "ferocious" COVID-19 outbreak that emerged at a …

China can offset effects of Fed's rate hikes
2 years, 7 months ago

China can offset effects of Fed's rate hikes

China Daily  

MA XUEJING/CHINA DAILY Since the international monetary system is dominated by the dollar, the US Federal Reserve's rate hike is bound to have a spillover effect on other economies and constrain the maneuvering space for their monetary policy to varying degrees. On May 12, for example, the yield on China's 10-year treasury bond was 2.81 percent, meaning the interest rate …

China can offset effects of Fed's rate hikes
2 years, 7 months ago

China can offset effects of Fed's rate hikes

China Daily  

MA XUEJING/CHINA DAILY Since the international monetary system is dominated by the dollar, the US Federal Reserve's rate hike is bound to have a spillover effect on other economies and constrain the maneuvering space for their monetary policy to varying degrees. On May 12, for example, the yield on China's 10-year treasury bond was 2.81 percent, meaning the interest rate …

Asian stocks rise after Fed chair downplays bigger rate hike
2 years, 8 months ago

Asian stocks rise after Fed chair downplays bigger rate hike

Associated Press  

BEIJING — Asian stock markets followed Wall Street higher on Thursday after the Federal Reserve chairman downplayed the likelihood of bigger rate hikes following the U.S. central bank’s biggest increase in two decades. Wall Street’s benchmark S&P 500 index climbed 3% on Wednesday for its best day in two years after the Fed raised its key interest rate by half …

Fed policy a risk for Asia's recovery
2 years, 9 months ago

Fed policy a risk for Asia's recovery

China Daily  

Editor's note: The US Federal Reserve makes decisions with the sole aim of boosting the US economy. Interest rate hikes in the US have significant impacts on Asian economies through trade, exchange rate, and financial market channels. In fact, empirical evidence shows that local interest rates in Asian developing economies respond to short-term US rates in a strongly positive manner …

US monetary policy harms global economy
2 years, 9 months ago

US monetary policy harms global economy

China Daily  

US Federal Reserve in Washington DC. Second, the Fed's interest rate hike is likely to trigger a financial crisis in emerging economies, as it will lead to the devaluation of emerging economies' currencies, thereby increasing their external debt burden. Third, interest rate hikes by the Fed will exacerbate debt risks in emerging economies whose foreign debt repayment peaks in 2022 …

Fed chief Powell says US economy faces some risks but still in good place
5 years, 3 months ago

Fed chief Powell says US economy faces some risks but still in good place

Live Mint  

The U.S. economy is in a good place though it faces some risks, Federal Reserve Chairman Jerome Powell said Friday in a brief speech that didn’t go into detail on the outlook for growth or interest rates. “Unemployment is near a half-century low, and inflation is running close to, but a bit below, our 2% objective,” he said in the …

US Fed slashes rates but indicates no more cuts: What does it mean for India?
5 years, 3 months ago

US Fed slashes rates but indicates no more cuts: What does it mean for India?

Live Mint  

As the US Federal Reserve expressed apprehensions on the need for rate cuts in the future, highlighting recent signs of strength in the economy, it may not be good news for emerging markets like India. Fed Chair Jerome Powell, however, later said if the US economy weakens, the central bank would lower rates further. Foreign institutional investors, who bought $9.4 …

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