Asian Stock Market: Trades in negative territory, Japan’s Nikkei leads losses

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Asian Stock Market: Trades in negative territory, Japan’s Nikkei leads losses – by lilyfinancial Asia Markets EmergingMarkets China Japan

The Asian stock market remains under pressure after Fitch downgraded the US Long-Term Foreign-Currency Issuer Default Rating from AAA to AA+. The leading rating company cites an expected fiscal deterioration over the next three years and a high general government debt burden as the primary reasons for this drastic action.

In Japan, the Bank of Japan maintained its ultra-low interest rates on Friday and decided to maintain its short-term interest rates at -0.1% while keeping its 10-year JGB yield target around 0%.surprised financial markets by making its yield curve control more flexible. The central bank will allow the 10-year yield to move above the cap as long as it stays below 1.0%, rather than being capped at 0.5%.

Additionally, the escalating tensions between the US-China might exert some pressure on riskier assets and benefit the safe-haven Japanese Yen. Chinese authorities announced on Monday restrictions on the export of certain drones and drone-related equipment to the United States, citing "national security and interests”. On the other hand, US President Joe Biden plans to sign an executive order curbing US technology investments in China by mid-August.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

 

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