Such worries are coming on top of concerns about inflation and what central banks might do to curb that trend. Higher interest rates tend to work as a minus for share prices.
Analysts monitoring Asian markets said regional tensions also remain a risk, because of the flareup between China and Taiwan after the recent visit of U.S. House Speak Nancy Pelosi to Taiwan. Japan's benchmark Nikkei 225 dipped 0.8% in morning trading to 28,024.96. Australia's S&P/ASX 200 edged up 0.1% to 7,028.40. South Korea's Kospi edged 0.1% higher to 2,495.87. Hong Kong's Hang Seng jumped 0.8% to 20,207.74, while the Shanghai Composite edged up 0.3% to 3,246.95.
The market’s latest gyrations came as investors prepare for a busy week of economic updates that could help answer whether the Federal Reserve’s efforts to cool the economy and quell inflation are working, or whether the central bank will continue aggressively raising interest rates. Wall Street is worried that the Fed could hit the brakes too hard and cause a recession.
This week’s inflation updates follow reports last week showing the employment market remains strong. While that’s good for the economy, it has complicated the Fed's effort to cool inflation.
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