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Asian markets up as Hong Kong returns with rally, eyes on US jobs

The astonishing hawkish tilt from the European Central Bank fueled concerns over the removal of the stimulus of the pandemic era, but the surge in Hong Kong on the first day of the break helped overcome the plunge on Wall Street. , The Asian market rose on Friday.

Before next week’s long-awaited inflation report, all the attention is on the second half of the US Employment Data Day, which is often used as a guide to Federal Reserve policy making.

As the economy resumes, the employment market is on a recovery track, and central banks feel there is plenty of room to start raising interest rates in March to combat the highest inflation rate in 40 years. Said that.

But while growth prospects remain bright, investors need to readjust to adapt to the end of the cheap cash era.

Several Fed officials have recently come up to argue that tightening campaigns don’t jeopardize recovery, but the trade floor debate is about how much to raise borrowing costs in March, and this year. There are discussions about how many more times to raise it.

Commentators say a strong reading on Friday’s work front will bring back the story of the more hawkish move in March with a rise of 50 basis points, as opposed to the normally announced 25 basis points. ..

Investors were surprised by the obvious change in the outlook for the ECB’s rate hike this year on Thursday.

Boss Christine Lagarde said inflationary pressures will be temporary and relieved as the global economy resumes and the supply chain resumes. This will allow banks to keep interest rates at ultra-low levels this year.

But last month’s record surge in prices and signs of their easing did not force her to reassess, saying “the situation has really changed.”

The news pushed the euro up, the single currency expanded its profits against the dollar and achieved sterling in Asian trade.

It also happened when the Bank of England announced two consecutive rate hikes.

“We’ve been experiencing interest rate shocks in the first half of this year,” Tracy Chen, Brandy Wine Global Investment Management, told Bloomberg Television.

“If the Federal Reserve, the Bank of England and other (emerging market) central banks are too aggressive in raising interest rates, they may face some sort of recession risk in the second half, or at least a slowdown in the economy. There is sex. “

ECB news shocked the US market, which had already fallen due to the crash of tech stocks. This was after Meta’s cool earnings report caused a 25% drop in stocks.

However, the blockbuster reading from Amazon recorded sales of about $ 140 billion in the holiday quarter, but on Friday it eased some of these concerns and provided some support to Asia.

It rose by more than 3% as Hong Kong led and investors in the city returned from a three-day Lunar New Year break. Tech giants and market tycoons, including Alibaba and Tencent, were one of the main drivers of profit, and financial institutions such as HSBC also enjoyed some coveted purchases.

“Catching up with the world is clearly a rebound, but we need to see how Hong Kong can survive the world’s volatility in the future,” said Joshua Club of Robeco Hong Kong.

Tokyo, Sydney, Seoul, Singapore, Manila, Mumbai, Bangkok and Jakarta also rose. Wellington was depressed, but Shanghai and Taipei were still closed due to vacations.

US futures have also been more powerful.

In the oil market, WTI expanded its rise after breaking through $ 90 for the first time in seven years on Thursday as traders bet on continued improvement in demand thanks to the economic resumption and the US plunged.

Prolonged concerns over tensions between Ukraine and Russia have also played a key role in the surge, with analysts predicting that $ 100 could soon be broken.

-Key numbers around 0620 Greenwich Mean Time-

Tokyo-Nikkei 225: 27,439.99, up 0.7% (closing price)

Hang Seng Index: 24,562.62, up 3.2%

Shanghai-Comprehensive: Closed due to holidays

Euro / Dollar: Rise from $ 1.1438 to $ 1.1462 late Thursday

Pound / $: $ 1.3601 to $ 1.3605

Euro / Pound: rises from 84.06p to 84.30p

Dollar / yen: down from 114.95 yen to 114.91 yen

West Texas Intermediate: $ 90.93 / barrel up 0.7%

Brent North Sea Crude Oil: $ 91.57 / Barrel Up 0.5%

New York-Dow: 1.5% down at 35,111.16 (closing price)

London-FTSE 100: down 0.7% at 7,528.84 (closing price)

Dan / Leg

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