Asian stock markets fell, focusing on China’s technological crackdown and US-China negotiation provider Investing.com

Gina Lee

Investing.com-Asia-Pacific stock markets mostly fell in early trading on Monday, as China and the upcoming technology industry blow lingered in the minds of investors.

By 10:29 PM Eastern Time (2:29 AM GMT), the Japanese stock market rose 1.39%, and the market reopened after the holiday and was released earlier in the day.

The South Korean stock market fell 0.30%, and the Australian stock market rose slightly by 0.13%.

Hong Kong fell 2.13%. The Hang Seng Technology Index provides exposure to Chinese Internet giants and is currently the world’s worst performing major technology index.

Last weekend, the Chinese stock market fell 1.32%, and the Chinese stock market fell 1.42%. China is one of the hottest investment markets in recent years.

US Deputy Secretary of State Wendy Sherman and Chinese Foreign Minister Wang Yi held the first US-China high-level meeting since March 2021, and tensions with the US are also high. The Chinese Ministry of Foreign Affairs said in a statement that Feng told Sherman that the relationship between the two countries had reached a “stalemate” and faced “serious consequences.”

Boosted by the better-than-expected US earnings season, the US stock market stabilized after closing at a record level on Friday. Tesla (NASDAQ:), Alphabet (NASDAQ:), Apple (NASDAQ:), Facebook (NASDAQ:) and Amazon (NASDAQ:) are among the heavyweight companies that will announce earnings this week. The U.S. Treasury bonds have hardly changed.

Before the Fed’s latest policy decision to be announced on Wednesday, investors are now preparing for possible turbulence. It is widely expected that the central bank will start to reduce the scale of asset purchases in 2022, including buying 120 billion US dollars of bonds every month, and raising interest rates faster than expected before 2024.

However, some investors believe that the Fed will maintain its current dovish stance while starting the countdown to asset reduction.

“The main message delivered by Fed Chairman Jerome Powell at the post-conference press conference should be consistent with his testimony in mid-July when he testified in Congress that he was not eager to downsize,” NatWest Markets economist Kevin Cummins (Kevin Cummins) Cummins) said.

“However, he will clearly remind market participants that the countdown to the reduction has officially begun,” he added.

At the beginning of the week, investors remained cautiously optimistic, as they looked forward to the US second quarter data released on Thursday.

AXA Investment Managers’ core investment chief investment officer Chris Iggo said in a report: “The macro narrative is still one of the recovery after COVID-19.”

However, lingering concerns about the continued spread of COVID-19 globally means that the market will continue to fluctuate. “Continued pandemic risk is likely to become the root cause of repeated occurrences of’safe-haven’ events in financial markets,” Igo said in the report.