MOSCOW, May 13 – PRIME. According to trading data, the main stock indexes of the Asia-Pacific region (APR) are growing on Friday morning amid weakening fears about a possible recession in the US.
U.S. stock markets fall on fears for the global economy
As of 8.58 Moscow time, the Shanghai Composite index is growing by 0.6%, to 3073.46 points, the Shenzhen Composite stock exchange – by 0.02%, to 1922.1 points. The Hong Kong Hang Seng Index is up 2.11% to 19789 points. The Australian S&P/ASX 200 is up 1.87% to 7069.9 points, the South Korean KOSPI is up 2.1% to 2602.75 points, the Japanese Nikkei 225 is up 2.6% to 26415.5 points.
This week, investors continued to assess the situation in the US, worrying about whether the Fed will be able to reduce inflation without plunging the country’s slowing economy into recession. “Macroeconomic concerns have continued to weigh heavily on equity markets this week as stagflation and recession fears continue to dampen investor enthusiasm,” said Federated Hermes analyst Lewis Grant, quoted by Agence France-Presse.
However, a statement by US Federal Reserve Chairman Jerome Powell on Thursday supported traders. The head of the Fed expressed confidence that the economy is strong enough to withstand the tightening of monetary policy.
In addition, the growth of indices supports a number of statements by Chinese politicians about providing support to the economy struggling with coronavirus restrictions.
Analysts at Bohai Securities, quoted by the Wall Street Journal, believe the market could sustain a broad recovery over the medium term, thanks to repeated statements of supportive policies from a wide range of senior officials.