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Asian stocks fall, China likely expands crackdown on private industry

© Reuters.

Gina Lee – Asia Pacific stocks fell on Tuesday morning. China has the potential to crack down on private industries, and concerns continue about rising inflation due to rising energy costs.

Benchmarks have changed little as the cash market resumed on US holidays.

Japan fell 0.88% by 9:49 pm (1:49 am Greenwich Mean Time). South Korea fell 1.44%, and the Bank of Korea made policy decisions earlier that day, so it remained at 0.75%.

Australia was down 0.35% and Hong Kong was down 1.10%.

China was down 0.53% and down 0.32%. The mood was bleak, with reports suggesting that China is expanding its scrutiny of the private industry by investigating its relationship with state-owned banks. Two China Partial Holders Evergrande The group (HK :) is also targeting HK $ 2 bonds that will be couponed on Monday, and the developer debt problem continues.

Meanwhile, China will release trade and inflation data later in the week.

The ongoing global energy crisis curbed the recent rise in oil and at the same time pushed aluminum prices to their highest level in 13 years. Investor concerns continue about inflation caused by the energy crisis and the supply chain disruption caused by COVID-19 affecting corporate profits and economic recovery. However, some investors were optimistic about the financial company’s third-quarter earnings season starting this week.

“We expect third-quarter earnings to be very strong, but looking forward to fourth-quarter and 2022 gives everyone an edge,” said Riverfront Investment Group. Rebecca Latimer, senior market strategist at the company, told Bloomberg.

Investors are also waiting for US data, including price indexes, scheduled for the second half of the week. This data could shape the Federal Reserve Board’s expected timeline for asset tapering and interest rate hikes.

“Future data releases could add to concerns about additional stagflation. In particular, September CPI inflation could be higher than expected and retail sales could be lower.

Fed President Raphael Bostic will speak later that day, and the Fed will announce it on Wednesday.

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Asian stocks fall, China likely expands crackdown on private industry Asian stocks fall, China likely expands crackdown on private industry

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