Asia Stocks Drop on Concern Policy to Stay Hawkish - Asia Market Wrap

19 Sep 2023 05:30China Energy Japan JPY UK

- Asian stocks declined on worries that major central banks' policy decisions this week will continue to be hawkish given the danger of inflation. Oil prices continued to rise, reaching a high of $95 per barrel for Brent.

- Shares in mainland China slipped on speculation the nation’s economic recovery is faltering. Equities also dropped in Japan and Australia, although the latter pared losses after central bank minutes showed a higher hurdle for further tightening. The Federal Reserve sets policy Wednesday, the Bank of England Thursday and the Bank of Japan Friday.

- Due to tightness in the physical market, Brent and West Texas Intermediate both increased for a fourth day, helping energy equities to rise. Since November, Brent has reached $95 per barrel for the first time.

- Following Monday's slight gains for the S&P 500 and Nasdaq 100 indices, US and Hong Kong market futures saw no change.

- Sentiment was hardly improved by good news from developers Country Garden and Sunac China. The final of eight local notes from Country Garden for which it requested to prolong repayments was approved by bondholders, while Sunac's debt restructuring plan was approved by creditors.