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©Reuters.
Investing.com — Most Asian stocks fell on Monday on weak guidance from Wall Street as expectations for key U.S. inflation data kept markets nervous, while confidence that the Bank of Japan would raise interest rates increased. As prices rose, Japanese stocks plummeted. soon.
Regional markets also fell following Wall Street’s selloff on Friday, as heightened uncertainty over U.S. interest rates led traders to lock in profits at record highs, particularly in the technology sector.
The better-than-expected index also factored in concerns about rising long-term interest rates, and the focus was on the outlook for inflation going forward.
U.S. stock futures were flat in Asian trading after reversing earlier losses.
Japanese stocks fall as Bank of Japan policy change appears imminent
Japan’s indexes were by far the worst performer in Asia on Monday, falling 2.3% following numerous reports suggesting the Bank of Japan was nearing the end of its ultra-easy policy.
Both indexes have fallen further from their record highs hit last week, with the composite index down nearly 2%.
Media reports say the Bank of Japan could raise interest rates as soon as possible and end its stimulative yield curve control policy, especially as Japan’s wages and inflation are expected to rise.
Japan’s upward revision also showed the economy avoided recession in the fourth quarter. The resilience of the economy gives the Bank of Japan more room to start raising interest rates immediately.
The Bank of Japan is currently scheduled to meet on March 18th and 19th, and Reuters reports that a rate hike could occur on those days or during a meeting in late April.
The decline in Chinese stocks was tempered by some improvement in inflation.
Chinese stocks fared slightly better than their peers on Monday, boosted by stronger-than-expected data released over the weekend.
It rose by 0.2% and fell by 0.2%. Hong Kong rose 0.9% as mainland stocks rose.
Data over the weekend showed China’s consumer inflation rose slightly more than expected in February, helped by increased spending during the Lunar New Year.
However, the decline was more than expected, showing that factory activity in China remains under pressure. This thinking limited the huge gains in Chinese stocks.
Broad Asian markets retreated. After hitting a record high last week, Australia’s index fell 1.5% as profit-taking intensified.
South Korea’s index fell 0.4% and India’s index futures showed a weaker move after the index hit a new high last week.
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