Asia stocks down after Powell’s renomination

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Fed chair’s second term reinforces expectations US will taper stimulus soon

A man wearing a protective mask walks past an electronic board displaying Japan’s Nikkei index outside a brokerage in Tokyo, Japan, on September 21 2021. Picture: REUTERS/KIM KYUNG-HOON

Australia’s S&P/ASX 200 outperformed with a 0.55% gain, boosted by miners and energy stocks. Japanese markets were closed for a public holiday. Overnight on Wall Street, the S&P 500 and Nasdaq Composite retreated from highs after Biden tapped Powell to continue as Fed chair, and Lael Brainard, the other top candidate for the job, as vice-chair.

The US rates chatter kept the dollar index well supported near a 16-month peak. The greenback was also near a four and a half-year top versus the yen in early deals on Tuesday. In commodities, spot gold rose 0.19% to $1,808.4 an ounce at 2.26am GMT, paring Monday’s losses. Gold prices were under pressure as Powell’s nomination drove expectations that the central bank will stay the course on tapering economic support.

 

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Decided to act on faith instead of fear. I'm now reaping on the rewards of that bold step and making more than could even imagine all thanks to her LindaStouffes

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