Business Maverick: Asia stock gauge dips; dollar nears one-month high: markets wrap

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An Asian equity index fell on Friday amid mixed Federal Reserve policy signals on the likely pace of interest-rate hikes, while the dollar climbed as the spotlight fell again on geopolitical tension.

MSCI’s Asia-Pacific share index shed less than 0.5%. Moves across Japan, China and Hong Kong were fairly muted. S&P 500, Nasdaq 100 and European futures slipped after Wall Street shares posted a small gain on Thursday.China’s Xi Jinping and Russia’s Vladimir Putin plan to be at a Group of 20 summit in Bali later this year. That sets up a showdown with US President Joe Biden and other leaders as Russia continues its war in Ukraine.could stir volatility in global markets.

Investor sentiment has been boosted by expectations of slower monetary tightening on signs that high inflation is cooling. But hurdles remain for the 12% jump in world equities from June lows, not least the risk of entrenched global price pressures alongside economic slowdowns in the US and China. While “lower volatility both in fixed income and in equities is starting to pull people back into the market,” events such as the Fed’s annual symposium in Jackson Hole, Wyoming next week will help determine if that’s sustainable, Nicholas Colas, co-founder at DataTrek Research, said on Bloomberg Television.he may lean against a recent loosening in financial conditions that makes it harder to curb the cost of living.

 

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