Asian benchmarks mixed as markets await Fed rate moves
Asian shares are mixed while Chinese shares surged ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation
TOKYO (AP) — Asian shares were mixed Wednesday while Chinese benchmarks surged ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation.
Oil prices rose more than $1 a barrel and U.S. futures were also higher. Stocks ended lower on Wall Street after an unexpectedly strong report on the job market raised concerns the Fed will keep the pressure on inflation with big rate increases.
Chinese shares extended gains after strong advances a day earlier driven by speculation the government might be preparing to gradually relax stringent COVID-19 restrictions. Since that was not followed by any official confirmation, the enthusiasm could quickly fade.
“The power of social media and retail investors was evident after stories circled on China’s zero COVID policy and if Beijing is preparing to phase it out," Stephen Innes of SPI Asset Management said in a commentary.
