Asian Stocks Slide Amid Yen Warnings and Trade Jitters
Asian stocks fell on Monday as markets prepared for a crucial week that includes key inflation data expected to guide bets on global interest rates. Japan's top currency official, Masato Kanda, warned against further intervention as the yen remained steady. Equity futures in Australia, Japan, and Hong Kong pointed to early losses, reflecting investor caution. The outlook for central bank policy rates from New Zealand to Japan and the U.S. remains uncertain as the markets position themselves for the second half of 2024.
In addition to financial concerns, geopolitical tensions also influenced market sentiment. The European Union and China agreed to begin talks on tariffs on Chinese electric vehicles, raising the prospect of a trade war. Chinese markets experienced notable declines, with the mainland stock index dropping 1%. Investors are also monitoring political developments, including the first UK prime ministerial and US presidential debates, as well as the first round of voting in the French legislative election. Meanwhile, the S&P 500 fell 0.2% on Friday, largely due to a significant options expiry. The Federal Reserve’s preferred inflation gauge is expected to provide further guidance on monetary policy later this week.
