Home Business Asian indices open trading of the week with heavy losses of around...

Asian indices open trading of the week with heavy losses of around 3%


Asian indices opened the week’s trading on Monday with steep losses of around 3%, following the impact of the Wall Street stock exchange, which last Friday suffered heavy losses, under the pressure of continued rising inflation and the anticipation of further decisions to raise interest rates from major central banks, as well as the return of closures in China due to the Corona epidemic.

At the start of trading this week, Asian markets plummeted dramatically, posting losses of around 3% on the Tokyo and Hong Kong exchanges.

The Chinese CSI300 index also dropped by more than 1.5% this morning, on the impact of new closures in Shanghai following the rise in Corona virus cases.

In major currency markets, the Japanese yen’s exchange rate against the dollar fell to its lowest level in 24 years.

The exchange rate of the yen has reached 135 against the dollar, almost 14% of the losses of the Japanese currency since the beginning of quest’year.

The yen’s losses came after a joint statement from the Bank of Japan and the Ministry of Finance on Friday warning of the yen’s weakness against the dollar. in view of the central bank meeting next Thursday and Friday.

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Exness’s chief market strategist Wael Makarem said Exness warned last week of the market’s tendency to assess a faster monetary tightening if inflation data were high.

Makarim explained in an interview with Al-Arabiya that the markets were priced at 50 basis points last week during the months of June and July, but the trend was headed for 50 basis points at the current meeting and 75 points at the next meeting, expecting the US Federal Reserve to move towards 50 basis points.

He pointed out that the weak yen is good for exporting companies, but on the other hand it affects companies that import oil or raw materials. primewhich increases their costs.

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