Tokyo pulled back before the Fed

Tokyo pulled back before the Fed

Tokyo (awp/afp) – Tokyo’s stock market fell sharply on Wednesday, anxiously awaiting a monetary policy decision from the US Federal Reserve (Fed) later in the day and also worried about an increase in bond sales. of the United States.

The flagship Nikkei index closed up 1.36% to 27,313.13 points and the broader Topix index also fell 1.36% to 1,920.80 points.

On the Hong Kong Stock Exchange, the Hang Seng index was not much better (-1.19% around 06:30 GMT).

The Fed is expected to continue on Wednesday for the third time in a row to a 0.75 percent increase in its rates to counter US inflation that is still very high, at the risk of seriously weakening the world’s biggest economic power.

The yield on 10-year U.S. bonds rose to 3.6% on Tuesday, the first since April 2011 and hurt stock markets, especially technology stocks, which are highly sensitive to financing conditions.

In terms of ethics

CAR FOR HALF: Bike storage at its best, Japanese automakers suffered on Wednesday on the Tokyo Stock Exchange, especially as their American rival Ford warned that it would pay a billion dollars more than expected to its suppliers in the third quarter because of inflation. of price.

Among the top US auto markets, Toyota fell 2.36% to 2,000 yen, Honda 1.91% to 3,477 yen and Nissan 3.05% to 521.3 yen.

In terms of oil and currency

After a red start in Asia, the oil market jumped after the order of “partial mobilization” in Russia, which threatens to pave the way for an escalation of the war in Ukraine, a conflict that already has a significant impact on the global energy market.

Around 06:45 GMT US WTI rose 1.91% to $85.54 and North Sea Brent gained 1.83% to $92.28.

On the foreign exchange market, the dollar remained higher against the yen ahead of the Fed, with one dollar at 143.66 yen around 07:00 GMT versus 143.75 yen on Tuesday at 21:00 GMT.

On the other hand, the European currency fell sharply against the Japanese currency after the announcement from Moscow, to 142.15 yen against 143.33 yen on Tuesday. The euro also fell to $0.9890 against $0.9970 on Tuesday at 9:00 pm GMT.