Fed hike, Bank of Japan, interest rates, currencies

Bank of Japan remains stable, maintains yield curve control policy – Yen weakens above 145

The Bank of Japan left interest rates unchanged, according to an announcement published on its website — meeting expectations forecast by economists in a Reuters poll.

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

“Japan’s economy has recovered as the resumption of economic activity progressed while protecting public health from Covid-19, although impacted by factors such as a rise in commodity prices,” the central bank said in the statement.

Jihye Lee

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

Above-average fund manager names his short positions

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

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– Zavier Ong

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

Asia-Pacific currencies continued to weaken after the US Federal Reserve made its third consecutive 75 basis point rate hike.

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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 surged above 1,409 against the greenback – its weakest reading since March 2009.

The Australian dollar fell to $0.6589.

– Jihye Lee

Two-year US Treasury yield nears 2007 highs

British pound continues to slide, hovering around 37-year low

The British pound continued to fall 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 concerns mount.

Analysts are divided on whether the UK central bank will hike rates by 50 basis points or 75 basis points later in the day.

Sterling last traded at $1.1223.

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– Abigail Ng

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

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

Stocks with this attribute have been “rewarded” this year, with the trend likely to continue until the market turns more bullish, Wilson said.

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– Zavier Ong

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

Significant adjustments to Bank of Japan policy are unlikely to occur until after the central bank’s leadership change in mid-2023, DBS Group Research said in a note Tuesday.

But the BOJ may consider some “policy tweaks” such as widening the target range by 10 basis points in response to market pressures, analysts wrote.

It added that the dollar-yen could test 147.66 levels last seen in August 1998 “barring any intervention” and added that a surge above 150 in the USD/JPY pair is not ruled out “barring that a hard landing in the US will lead to Fed cuts”.

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– Abigail Ng

Stock futures open lower

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

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

– Sarah Min

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

Stocks fluctuated on Wednesday but ended the session deep in the red after the Federal Reserve announced another 75 basis point hike in interest rates.

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

— Samantha Subin

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