SINGAPORE – Shares in Asia-Pacific opened lower on Friday after a sharp fall on Wall Street, as investors weighed the prospect of aggressive monetary policy tightening, triggering a recession.
Futures pointed to lower openness for Japanese stocks. The Nikkei futures contract in Chicago was at 25,750, while its counterpart in Osaka was at 25,670. Nikkei 225’s Last closed at 26,431.20.
Australian shares also looked set to open lower, with SPI at 6,325 against futures contracts S&P/ASX 200Last closed at 6,591.10.
Shares on Wall Street fell sharply overnight, with the S&P 500 falling 3.25% to 3,666.77. The Dow Jones Industrial Average fell 741.46 points, or 2.42%, to end at 29,927.07. The Nasdaq Composite fell 4.08% to 10,646.10.
Bank of Japan rate decision ahead
The Bank of Japan is set to release its Monetary Policy Statement on HK/SIN at 11:00 am on Friday.
Joseph Caperso, head of international economics at Commonwealth Bank, “We do not expect the BoJ to dump its 0.0% +/‑25bp yield target on ten-year Japanese government bonds. Japan’s underlying inflation impulse is weak at around 1%/yr ” of Australia, wrote a note on Friday.
“If the BoJ keeps monetary policy unchanged, the JPY and Japanese swap rates and yields on JGB futures are likely to decline sharply,” said Capurso.
Before that decision, Japanese yen 132.61 per dollar, which was stronger than the greenback’s level above 134 earlier this week.
The Japanese central bank’s decision comes after global peers tightened monetary policy earlier this week. US Federal Reserve, bank of england And Swiss National Bank All are announcing rate hikes.
currencies
US Dollar IndexThe greenback, which tracks against a basket of his peers, was at 103.631 after a recent decline from levels above 105.
Australian Dollar Changed hands at $0.7043 after a recent rally from below the $0.702 level.