Asia-Most of the stocks in the Pacific were down Monday morning. Investors are worried about a recession because major central banks are tightening their money policies.
Japan’s Nikkei 225 fell 1.72 percent by 10:24 PM ET (2:24 AM GMT).
The KOSPI fell by 2.36 percent.
In Australia, the ASX 200 fell 1.03 percent.
Hong Kong’s Hang Seng Index fell 0.74 percent.
The Shanghai Composite fell 0.38 percent, while the Shenzhen Composite rose 0.42 percent.
Last week, major central banks raised interest rates, which made investors worry even more about a possible recession. On Wednesday, the U.S. Federal Reserve said that interest rates would go up by 75 basis points, which is the most since 1994. The Swiss National Bank also raised interest rates by 50 basis points on Thursday, which was a surprise. On the same day, the Bank of England raised its rates to 1.25 percent.
“Market volatility has stayed high, and the VIX index had its highest weekly close since late April. “This is a trend that goes beyond equities, with a rise in volatility in FX, rates, and credit spreads,” said NAB strategist Rodrigo Catril to Reuters.
“At this point, it’s hard to see a change in luck until we see signs that inflationary pressures are easing.”
On Wednesday and Thursday, Fed Chair Jerome Powell will talk to the House. Last week, the Fed said it was “unconditionally” committed to bringing inflation down, and Fed Governor Christopher Waller said on Saturday that he would support another 75 basis point hike in July.
On Saturday, U.S. President Joe Biden said that he was thinking about removing some tariffs on China and possibly putting a hold on the federal gas tax to fight inflation. This made people feel better.