Asian Markets Tumble as Investors Await Fed’s Decision
The markets in Australia and Japan witnessed a decline on Wednesday as investors anxiously await the impending rate-hike announcement from the U.S. Federal Reserve. The Reserve is slated to announce its rate decision early Thursday in Asia, a move that has garnered significant investor attention.
Eye on the Yen as U.S. Wages Raise Inflation Concerns
Investors will keep a watchful eye on the yen, which has shown signs of extreme volatility this week. Suspected intervention on Monday caused a turbulent start to the week, and the currency is currently hovering around 157.7 against its American counterpart, the greenback.
Most Asian markets remained closed on Wednesday due to Labor Day.
Nikkei 225 and ASX 200 Dip
Japan’s Nikkei 225 took a hit, sliding by 0.74% at the opening bell. The Topix, a broader index, followed suit, posting a 0.69% decline.
In Australia, the S&P/ASX 200 suffered an 0.8% loss.
Overnight Drop in U.S. Market
Overnight on Wall Street, all three major U.S. indices plunged after the release of a higher-than-expected wage data, fueling renewed concerns over rising inflation. The data’s release occurred ahead of the Federal Reserve’s rate-setting meeting.
The Labor Department reported on Tuesday that the employment cost index, a measure of both wages and benefits, rose by 1.2% in the first quarter. This surpassed the 1% estimate projected by economists surveyed by Dow Jones. Following the data’s release, Treasury yields surged, with the 2-year yield crossing the 5% threshold.
Losses Posted by Major U.S. Indices
The S&P 500 experienced a 1.57% decline, while the Dow Jones Industrial Average dipped by 1.49%. The Nasdaq Composite suffered the steepest loss, shedding 2.04% to close at 15,657.82.
Contributors: Brian Evans and Sarah Min of LA News Center
Data sourced from: cnbc.com
