Asia-Pacific Markets Mixed

Asia-Pacific markets mixed on Monday as investors awaited the Federal Reserve’s monetary policy meeting in the United States this week.

The Nikkei 225 index in Japan gained 0.24 percent to 27,588.37, while the Topix index gained 0.14 percent to 1,929.87. The Kospi in South Korea fell 1.49 percent to 2,792, while the Hang Seng in Hong Kong fell 1.24 percent to 24,656.46.

The Shanghai Composite was flat, around 3,524.10, while the Shenzhen component gained 0.37 percent to 14,081.80.

The ASX 200 in Australia fell 0.51 percent to 7,139.50. As significant banks, miners, and oil stocks sold off, the energy, materials, and financial subindices fell 0.53 percent, 1.15 percent, and 0.59 percent, respectively. Commonwealth Bank shares, on the other hand, rose 0.07 percent. The Nifty 50 fell 2.46 percent, and the Sensex fell 2.5 percent in the afternoon trade in India.

This week’s market attention will be dominated by headline events and risks, with much of it focused on Wednesday’s FOMC meeting and the escalating Russia-Ukraine situation, which is teetering on military action.

As a result, amid a complex and interconnected network of macro and market triggers, caution, if not outright ‘risk-off,’ may be the theme.

The USA and Europe

Global stock markets fell last Friday. In the United States, the tech-heavy Nasdaq Composite fell 7.6 percent for the week, the most since October 2020. It was also more than 14 percent lower than its record close in November. The Federal Open Market Committee will meet on Tuesday and Wednesday to determine the next steps in U.S. monetary policy.

Rising inflation is a significant concern for the Federal Reserve.

Markets have been cautiously trading ahead of this week’s FOMC statement. They are skeptical that the Fed will end quantitative easing this week, as some in the market believe.

Geopolitical risks persist elsewhere, particularly in Ukraine. The U.S. State Department advised all American citizens in the European country to leave immediately, citing Russia’s massive military buildup along the border.

The U.S. On Friday, Secretary of State Antony Blinken told his Russian counterpart that the Kremlin could defuse tensions and fears of an invasion. Hence, it withdrew 100,000 troops and equipment from Ukraine’s borders.