- As new questions about whether the Federal Reserve has completed tightening policy surfaced, Asian equity markets saw a dip. The US currency rose.
- Major indices were forecast to trade lower, ending a four-day gain record for an Asian equities benchmark. The Kospi Index in South Korea dropped more than 3% after rising to its highest level since 2020 on Monday in response to a new prohibition on short sales. US and European stock contracts declined.
- According to Jun Rong Yeap, a market analyst at IG Asia, "indices are giving back some of their gains following the stellar rallies across the region yesterday, with a recovery in bond yields and a firmer US dollar to start the week."
- As of right now, traders are projecting that the Fed will stick with its strategy of remaining open, despite the recent loosening of financial conditions. Despite encouraging indications that price pressures are lessening, Minneapolis Fed President Neel Kashkari stated it's premature to declare victory over inflation. A number of Fed officials, including Chair Jerome Powell, are scheduled to speak over the coming days.
