Stocks in Asia slipped as uncertainties lingered in the Middle East and markets digested the possibility of further rate hikes by the Federal Reserve. Better-than-expected China data failed to dispel concerns over the country’s economic outlook.
“I don’t think market will be confident on growth just from one round of improved macro data,” said Xin-Yao Ng, an investment director for Asian equities at abrdn. “Investors will still be watching for company results and stimulus from the government to drive confidence.” Treasuries steadied in Asian trading after two-year yields hit the highest since 2006 in the previous session as strong US data reinforced the higher-for-longer rates narrative. Swap contracts tied to Fed rate decisions showed traders are pricing in more than 60% odds that policymakers will raise interest rates by a quarter percentage point in January.