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jira13578 Joined: 16 Dec 2020 Posts: 561

Posted: 2021-12-14 05:30
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Federal Reserve Chairman Jerome Powell (Fed) Statement to Congress on Nov. 30 that the SLOTXO Fed meeting on December 14-15 will discuss the Accelerate the speed of reducing the amount of bond purchases according to the quantitative easing (QE) measures, a new factor contributing in addition to COVID-19. Omicron species causing the US stock market to plummet Make the situation turn from green during the futures market. It comes in red when the real market is open. The Dow dropped 620 points.

Fed chairman told Congress May consider speeding up bond purchases two to three months earlier than previously scheduled. It also said it would stop using the word "temporary" on the current inflation rate that has soared in 30 years. Messages sent by the Fed chairman It is interpreted that a tightening monetary policy will begin. This means there may be a faster interest rate hike.

A shift in the Fed's stance from a "pigeon" or monetary policy easing to a "hawk" or a tighter monetary policy. What does it mean for the Asian market? It's what analysts are watching and predicting what will happen.

According to Bloomberg That gathered the opinions of analysts, indicating that the acceleration in reducing the QE and raising interest rates in the United States. It will negatively affect the stock market with high beta values. such as emerging markets (EM).

however In the opinion of "Su Trinh", Managing Director of Manulife Investment Management said that in its view, emerging markets in Asia are in a position to withstand the volatility of monetary policy. Because Asian inflation is more controlled. It also relies less on foreign investment than emerging markets in other regions. But the bad news is that Asia is too dependent on exports.

Alvin T. Tan, head of forex strategy at RBC Capital Markets in Hong Kong, is expected to put pressure on risky assets in general. As well as Asian stock markets, Terence U, foreign exchange strategist at Overseas Chinese Banking Corp in Singapore, said the Thai baht could be the most at risk. because of the impact of the new round of Covid-19 outbreak may prevent tourists from returning

More importantly, we will be closely watching the development of the yuan. The yuan continued to appreciate. which protects the Asian currency But if the yuan shows a weak signal It is also expected that capital outflows in emerging markets in Asia will be higher.

Michael Reiner Priss, investment strategist at Golden Equator Wealth, thinks that if a rate hike drives the dollar to extreme strength. will have a negative effect on Asian stock markets and EM, but the Chinese market and the large ASEAN market like Indonesia May outperform Western markets next year according to the rules of entry averages. As for the Chinese market, there has been a major correction. Therefore, the value of Chinese stocks is more attractive.

Koon Goh, head of Asia research at Australia & New Zealand Banking Group, said although the Fed's statement suggested a rate hike could be reached by the middle of next year. But you can see that the dollar has not strengthened. This could be because the Fed's statement was in line with market expectations.

Therefore, the impact on the Asian currency is likely to be mixed. The currencies of countries with strong exports and heavily export-dependent, such as the South Korean won, Chinese yuan and the Singapore dollar, will do well.