Asia stocks down, dollar holds firm after Powell's renomination

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HONG KONG: Asia stocks were mostly lower on Tuesday, tracking a retreat on Wall Street after President Joe Biden picked Federal Reserve Chair Jerome Powell to lead the central bank for a second term, reinforcing expectations the U.S. will taper its stimulus soon.

MSCI's gauge of Asia Pacific stocks outside Japan fell 0.49%, while Hong Kong's Hang Seng Index and China's benchmark CSI300 Index opened 1.1% and 0.2% lower, respectively.

Germany’s outgoing Chancellor Merkel said the latest surge is the worst experienced by the country so far, while Austria went into a fresh lockdown https://www.reuters.com/markets/stocks/austria-enters-fourth-lockdown-covid-cases-soar-anew-europe-2021-11-22 on Monday. ANZ bank analysts concurred, saying in a note to clients that the Powell news stoked"expectations that tapering will accelerate and rates will begin to lift from June 2022." The U.S. rates chatter kept the dollar index well supported near a 16-month peak. The greenback was also near a 4-1/2-year top versus the yen in early deals on Tuesday.

In commodities, spot gold rose 0.19% to $1,808.4 per ounce at 0226GMT, 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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