Fed hike, Bank of Japan, interest rates, currencies

Bank of Japan holds steady, stands by yield curve management policy – yen weakens above 145

The Bank of Japan kept interest rates on hold, according to an announcement posted on its website – in line with expectations predicted by economists in a Reuters poll.

The Japanese yen weakened to 145 against the dollar shortly after the decision.

“Japan’s economy has picked up as the resumption of economic activity has progressed while public health has been protected from Covid-19, despite being affected by factors such as a rise in commodity prices,”[ads1]; the central bank said in the statement.

Ji Hye Lee

CNBC Pro: This fund manager beats the market. Here’s what he’s betting against

Fed hike, Bank of Japan, interest rates, currencies

Equity markets are down, but the fund managed by Patrick Armstrong at Plurimi Wealth continues to deliver positive returns. The fund manager has a number of short positions to play the market volatility.

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— Zavier Ong

Asian currencies weaken after the Fed’s third big hike in a row

Currencies in the Asia-Pacific weakened further after the US Federal Reserve delivered its third consecutive rate hike of 75 basis points.

China’s onshore yuan weakened above 7.09 per dollar, hovering near levels not seen since June 2020.

The Japanese yen weakened to 144.51, while the Korean won also rose above 1,409 against the dollar – the weakest since March 2009.

Australia’s dollar fell to $0.6589.

– Jihye Lee

US 2-year Treasury yields inch towards 2007 highs

The British pound continues to plummet, hovering around 37-year lows

The British pound fell further in Asian morning trade to hit $1.1217 – its lowest level since 1985.

The currency has lost ground against the US dollar this year as economic worries mount.

Analysts are divided on whether the Bank of England will raise interest rates by 50 basis points or 75 basis points later today.

Sterling last traded at $1.1223.

— Abigail Of

CNBC Pro: Morgan Stanley’s Mike Wilson names the key attributes he likes in stocks

Morgan Stanley’s Mike Wilson is staying defensive amid continued market volatility this year. He mentions the key attribute he looks for in stocks.

Stocks with this trait have been “rewarded” this year, with the trend likely to persist until the market turns more bullish, according to Wilson.

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— Zavier Ong

Bank of Japan likely to maintain yield curve control for remainder of 2022: DBS

Significant adjustments to the Bank of Japan’s policies are likely to happen only after the central bank’s leadership change in mid-2023, DBS Group Research said in a note on Tuesday.

But the BOJ may consider some “policy fine-tuning,” such as widening the target band by 10 basis points, in response to market pressure, analysts wrote.

It added that “regardless of intervention”, the dollar-yen could test 147.66 last seen in August 1998, and added that they did not rule out USD/JPY pushing above 150 “without a hard landing in the US that gets Fed cuts ».

— Abigail Of

Stock futures open lower

US stock futures fell on Wednesday night after a volatile session in the major averages as traders weighed another big rate hike by the Federal Reserve.

Dow Jones Industrial Average futures fell 16 points, or 0.05%. Futures on the S&P 500 and Nasdaq 100 fell by 0.19% and 0.31% respectively.

—Sarah Min

Stocks crash, Dow closes 522 points lower in volatile trading session

Stocks faltered on Wednesday, but ended the session deep in the red after the Federal Reserve announced another rate hike of 75 basis points.

The Dow Jones Industrial Average fell 522.45 points, or 1.7%, to close at 30,183.78. The S&P 500 fell 1.71% to 3,789.93 and the Nasdaq Composite fell 1.79% to 11,220.19.

– Samantha Subin

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