Rising interest rates will continue to be the dominant theme in East Asian stock markets on Tuesday and will keep buyers in check. In addition, consumer prices for December will be reported in the US on Wednesday, which might presumably provide further information regarding the pace of the rise in interest rates in the US.
Recently, voices increased, for example from Goldman Sachs, that there might even be four rate hikes in 2022, the first of which in March. In South Korea, the majority of economists expect the third rate hike in the country since August 2021 on Friday because inflation is too high in South Korea.
In this environment, caution continues to dominate the stock exchanges. Even following Wall Street’s guidelines are neutral at best. The day before, following a weak start, it was enough to achieve a slightly different final trend. It was helpful that the market interest rates, which had risen further at the beginning, receded once more over the course of the year.
The Nikkei index in Tokyo is 0.8 percent in the red at 28,239 points following the holiday break on Monday. It is being held back by the stronger yen, which is gaining popularity as a safe haven in view of the prevailing interest rate concerns. The dollar costs 115.24 yen, compared to around 116 yen at the same time on Friday. The stock exchanges in Seoul and Shanghai are only slightly in the red, while the HSI in Hong Kong is up 0.3 percent. In Sydney, trading has already ended with a minus of 0.8 percent.
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