Asia-Pacific markets are poised for a mixed start on Friday as investors anticipate crucial economic data releases from China and Japan. The People's Bank of China is scheduled to announce its loan prime rate decision, with market participants closely observing whether the central bank will lower rates to stimulate the Chinese economy. The one-year LPR influences corporate and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.
The Dow Jones Industrial Average experienced a significant decline, plummeting by 1,100 points to its tenth consecutive loss, driven by heightened inflation concerns and anticipation of further interest rate hikes. The VIX, widely regarded as a measure of market volatility, surged 74% to close at 27.62, marking the second-largest percentage increase in its history. This surge reflects investor anxieties regarding the potential for a recession and the impact of persistent inflation. Additionally, House Republicans have reportedly reached a short-term government funding agreement to avert a shutdown that would have commenced on Friday evening. Meanwhile, the yield on the 10-year Treasury note rose for the second consecutive day, exceeding 4.5% and exerting downward pressure on stocks