Asian stocks fall on US rate uncertainty; Nikkei slammed by BOJ bets
Investing.com-- Most Asian stocks fell on Monday, tracking a weak lead-in from Wall Street as anticipation of key U.S. inflation data kept markets on edge, while Japanese shares fell sharply amid growing conviction that the Bank of Japan will raise interest rates soon.
Regional markets fell tracking a sharp decline in Wall Street on Friday, as growing uncertainty over U.S. interest rates saw traders lock-in profits at record highs, especially in the technology sector.
Stronger-than-expected nonfarm payrolls data also factored into concerns over higher for longer interest rates, putting an upcoming reading on consumer price index inflation squarely in focus.
U.S. stock futures were flat in Asian trade after recouping earlier losses.
Japan’s Nikkei 225 index was by far the worst performer in Asia on Monday, sliding 2.3% as a slew of reports indicated that the BOJ was close to ending its ultra-loose policies.
The broader TOPIX index shed nearly 2%, as both indexes fell further from record highs hit last week.
Media reports said the BOJ could raise interest rates and end its stimulative yield curve control policies by as soon as a meeting next week, especially amid expectations of higher Japanese wages and inflation.
An upward revision in Japan’s GDP also showed that the economy avoided a recession in the fourth quarter. Resilience in the economy gives the BOJ more headroom to immediately begin raising interest rates.
The BOJ is now set to meet on March 18 and 19, with Reuters reports saying that a hike could come either then or during a late-April meeting.
Chinese stocks fared somewhat better than their peers on Monday, encouraged by stronger-than-expected consumer inflation data released over the weekend.
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