Asian Shares Fall On Fading Rate-cut Bets

(RTTNews) - Asian stocks ended broadly lower on Monday as robust U.S. jobs data coupled with relatively hawkish comments from Federal Reserve Chair Jerome Powell in an interview broadcast Sunday night led investors to scale back bets on interest rate cuts this year.

The dollar and bond yields rose, weighing on investors' risk appetite.

Gold was under selling pressure for a second straight session while oil prices climbed amid indications that the United States plans further military action in the Middle East.

Chinese markets led losses, with the benchmark Shanghai Composite ending 1.02 percent lower at 2,702.18 after a volatile session as a cut to the reserve ratio requirements for banks came into effect and a private survey showed activity in China's services sector activity fell slightly at the start of 2024.

With many big shareholders of big companies facing margin calls, China's securities regulator said earlier today that it would closely monitor and take forceful measures to prevent risks from pledged shares.

Hong Kong's Hang Seng finished down 0.15 percent at 15,510.01, recouping some initial losses as former U.S. President Donald Trump said he would impose tariffs on China again if elected to power in the scheduled November presidential polls.

Japanese markets advanced after data showed December service activity expanded at a faster pace than the previous month.

The Nikkei average rose 0.54 percent to 36,354.16 while the broader Topix index settled 0.67 percent higher at 2,556.71.

Automakers and other export-related stocks topped the gainers list, tracking a weaker yen.

Department store operator Isetan Mitsukoshi Holdings surged 6.6 percent and electronics firm Panasonic Holdings jumped 4.6 percent after reporting better-than-expected earnings.

South Korea's Kospi average dropped 0.92 percent to 2,591.31 in cautious trade as the Lunar New Year approaches.

Samsung Electronics fell 1.2 percent as its Chairman Lee Jae-yong was acquitted by a court of financial crimes linked to a controversial 2015 merger.

Australian markets fell sharply ahead of an interest rate decision from the Reserve Bank of Australia, due Tuesday.

The benchmark S&P ASX 200 fell 0.95 percent to 7,625.90, dragged down by resources stocks. The broader All Ordinaries index closed 0.96 percent lower at 7,855.40.

Silver Lake Resources plummeted 11.5 percent while Red 5 added 3 percent after the gold miners agreed to merge via a scheme of arrangement. Evolution Mining and Northern Star lost4.6 percent and 3.8 percent, respectively.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index finished marginally lower at 11,928.70.

U.S. stocks rallied Friday on the back of encouraging earnings reports from the likes of Amazon and Meta Platforms as well as robust January employment data.

Data showed the U.S. economy added 353,000 jobs in January, much higher than expectations for an increase of about 180,000 jobs.

Job growth for December was revised higher and the jobless rate came in unchanged at 3.7 percent in January, prompting investors to scale back their expectations for interest-rate cuts this year.

The Dow edged up 0.4 percent and the S&P 500 added 1.1 percent to reach new record closing highs while the tech-heavy Nasdaq Composite jumped 1.7 percent.