Hong Kong stocks fall Asian markets mixed before Fed rate decision

BoJ board members discussed inflation, Kuroda hinted at a future policy shift

Policy board members agreed at the Bank of Japan’s latest meeting that it was appropriate to “persistently continue with broad-based monetary easing,” according to the Minute released Wednesday.

One member said the central bank’s stance on easing should continue even if inflation accelerates in the short term, as long as expectations remain low.

A few members said that the BOJ’s monetary policy targets price stability rather than foreign exchange rates, and that it should “carefully explain” the need to maintain the current position.

Some members said the expansion of inbound tourism consumption was one way to take advantage of the weak yen.

Separately, Bank of Japan Governor Haruhiko Kuroda It said He told Parliament that the yield curve control policy could be adjusted in the future, according to Reuters.

“If our 2% inflation target appears to be met, making yield curve control more flexible could become an option,” Kuroda was quoted as saying.

– Abigail Ng

South Korea’s inflation rose in October, more than estimates

South Korea’s consumer price index rose 5.7% in October from the same period last year, above the average estimate of 5.6% that a Reuters poll had forecast.

Data from Statistics Korea It showed that prices rose 0.3% compared to the previous month.

Electricity, gas and industry prices led the increase, and core inflation, which does not include food and oil prices, rose by 4.8% compared to last year.

– Jie Lee

CNBC Pro: Goldman’s Currie reveals ‘best’ hedge against inflation, rate hikes and geopolitical risks

There is one investment that can protect investors from rising interest rates, inflation and geopolitical risks, says Jeff Currie of Goldman Sachs.

Currie, global head of commodity research at Goldman Sachs, said it has a growth potential of 20-30% in the short term, with additional upside risks to the price target.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Major Chinese stocks rise amid unconfirmed posts to reopen debate

Stocks in Hong Kong and Mainland China rallied Tuesday after circulating unconfirmed reports about the formation of a committee to reopen discussions in China. Chinese Foreign Ministry spokesman Zhao Lijian said Reuters He was not aware of the situation.

Zhao was quoted as saying, “I don’t know where you got this information from. I don’t really know anything about this.”

Economist Hao Hong of the Grow Investment Group Tweet that the Rumors Committee is reviewing data from multiple countries It aims to reopen in March next year.

– Jie Lee

Stocks close lower

Stocks closed lower as markets braced for another Fed rate decision on Wednesday.

The Dow Jones Industrial Average fell 79.75 points, or 0.24%, to 32,653.20, while the S&P 500 fell 0.41% to 3,856.10. The Nasdaq Composite Index fell 0.89% to 10,890.85.

– Samantha Sobin

New York Live’s Goodwin says the Fed pivot is out of reach

Investors may be a little excited about possible changes from the Federal Reserve, according to Lauren Goodwin, economist and portfolio strategist at New York Life Investments.

Goodwin said in a note that she expects the Fed to rise by 0.75 percentage points on Wednesday and half a point in December, but the slowdown should not be seen as the start of a major turnaround from the central bank.

“A Fed pause is not the same as a pivot point,” Goodwin said in a statement. “Sure, deteriorating economic and credit conditions may turn the Fed modestly at some point, but it is unlikely that there will be a full pivot into accommodative territory in the year next”. note.

Goodwin noted that the first hikes in interest rates should now begin to have an impact across the broader economy, rather than just housing. However, the Fed will need several months of data to work its way around before changing course.

“At this point, with inflation as sudden as it has already been, the Fed will want to see clear signs of a reversal in wage growth before pivoting,” Goodwin said. “Recession should be seen as a base case rather than a risk.”

– Jesse Pound

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