From Gina Lee
Investing.com – Asia Pacific stocks were largely down on Monday morning. However, investors started the fourth quarter of 2021 cautiously bullish as they hope for economic growth to pick up to help overcome concerns about inflationary pressures.
Japan fell 1.27% and Hong Kong fell 2.31% at 9:55 p.m. ET (1:55 p.m. GMT). In Australia the value rose by 0.81%. South Korea’s was stable at 3,019.18.
The Chinese markets were closed on Monday.
In the US, the Friday after rose by over 1% Merck & Co .s (NYSE 🙂 COVID-19 pill showed promising results, and the index released on Friday was better than expected at 61.1 for September.
The decline receded for a third day, with tensions in Asia high alongside tensions between the US and China due to a record number of Chinese fighter jets fly by near Taiwan. The benchmark 10-year US Treasury bond yield fell to 1.45%.
“The rally in the greenback has stretched momentum indicators and a correction / consolidation phase looks likely ahead of the latest US labor report,” Bannockburn’s global chief market strategist Marc Chandler told Bloomberg.
Investors in the Asia-Pacific region will also be following the news from China Evergrande Group (HK :), whose. Investors will also await comments from a meeting of the Organization of Petroleum Exporting Countries and Allies later in the day as crude oil prices continue to rise.
As fears of a slowing economic recovery from COVID-19 continue to grow, the U.S. employment report will be a focus for investors. Global stocks had their worst month since March 2020 in September, amid concerns over rising inflation, supply chain bottlenecks, a growing global energy crisis and a slowdown in China’s economic recovery.
However, some investors remained cautiously bullish, pointing to historical patterns where stocks tended to show strength towards the end of the year.
“Investors need to be aware of the seasonal strength of the market. When the fourth quarter is ugly, it’s usually really ugly, but when it’s strong it tends to be pretty strong, “Tallbacken CEO Michael Purves told Bloomberg.
On central bank news, the monetary policy decision will be announced on Tuesday, followed by the one day later. That’ll round off the week when it announces its decision on Friday.
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