Jakarta, CNBC Indonesia – Asian stocks opened lower on Wednesday (22/9/2021), where investors monitored the movement of the Chinese stock market, which reopened after two days of being closed due to a national holiday.
Japan’s Nikkei Index re-opened 0.37% lower. However, after about 90 minutes, the Nikkei managed to gain slightly 0.07%. Meanwhile, China’s Shanghai Composite opened down 1.1%, and Singapore’s Straits Times opened down 0.24%.
Meanwhile, Hong Kong’s Hang Seng index and South Korea’s KOSPI were not opened because they were on a national holiday to commemorate Mid-Autumn Festival Day.mid-autumn).
China’s stock market re-opened today after a two-day holiday. Investors will be watching the Chinese stock market’s reaction to the impact of the liquidity crisis from China’s second-largest property company, China Evergrande Group.
On the other hand, the market is also watching the announcement of the benchmark interest rates of the central banks of China and Japan today.
Consensus Tradingeconomics estimates that the People’s Bank of China (PBoC) will maintain its benchmark lending rate today, where the 1-year loan interest rate remains at 3.85%, while the 5-year loan interest rate at 4, 65%.
Besides China, Japan’s central bank (Bank of Japan/BoJ) will also announce its latest benchmark interest rate, where Tradingeconomics estimates the BoJ will also keep its benchmark interest rate at -0.1% level.
Turning to the United States (US), Wall Street markets closed mixed with the majority weakening on Tuesday (21/9/2021) local time or early this morning Indonesian time, amid the actions of investors who started buying shares when the correction occurred or buy on weakness.
The Dow Jones Industrial Average (DJIA) and the S&P 500 failed to break through the strengthening levels in yesterday’s trading, where the Dow Jones closed down 0.15% to 33,919.84, and the S&P 500 edged down 0.08% to 4,354.16. .
While the Nasdaq Composite was successful rebound into the green zone with an increase of 0.22% to the position of 14,746.4. Succeed reboundThe Nasdaq is action-driven buy on weakness investors in technology stocks, especially in Apple stocks.
Before the Dow Jones and S&P 500 failed reboundIn fact, the two main indexes on Wall Street were excited again following the action buy on weakness by investors.
Market participants are anticipating the results of the meeting of the US central bank (Federal Reserve / The Fed) which will be announced early tomorrow Asian time, as well as their quarterly economic projections which are popularly called the dot plot. Fed Chair Jerome Powell has said that tapering (reduced injection of liquidity into the market) could start this year.
We’ll see if there’s evidence that the Fed’s dot plot doesn’t come up with content that scares the market… we’ll also have to see if there’s any evidence that the Chinese government will take action [terkait Evergrande],” said Yung-Yu Ma, Head of Investment Planning at BMO Wealth Management, as quoted by CNBC International.
On the other hand, concerns regarding the risk of spreading the delta variant of the corona virus (Covid-19) also began to decrease, after Johnson & Johnson (J&J) reported that its vaccine injection had an effectiveness of up to 94%.
CNBC INDONESIA RESEARCH TEAM
(chd / chd)
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