Asian stocks fall, focus on China’s Evergrande debt crisis and Fed decision By Investing.com

By Gina Lee

Investing.com – Asia-Pacific stocks were down Monday morning with a focus on China Evergrande The group’s (HK 🙂 persistent debt crisis and that of the US Federal Reserve.

Hong Kong slipped 1.96% by 9:32 pm ET (1:32 GMT) and in Australia it fell 1.30%.

The Chinese, Japanese and Korean markets were closed on Monday.

Ten-year US Treasury yields have climbed as the Fed prepares to make its policy decision on Wednesday. Treasury cash will not be traded in Asia on Monday due to the Japan holidays.

Investors are holding their breath ahead, expected Thursday. The stabilized.

They are also awaiting the Fed’s policy decision, due on Wednesday, for more clues on the central bank’s asset reduction schedule.

“It will really depend on when and how quickly the decline occurs,” Tony Minopoli, president and chief investment officer of Knights of Columbus Asset Advisors, told Bloomberg.

“We don’t think the Fed is really going to be able to wire this too much. We have inflation in the system, wages are rising, supply chains are driving prices firmly and with so many central banks having to make rate decisions, we think it’s a little nervous, ”a- he added.

Fed Chairman Jerome Powell, Governor Michelle Bowman and Vice President Richard Clarida will discuss the economic recovery after COVID-19 on Friday.

Other central banks that made policy decisions throughout the week include the and the, including Wednesday and Thursday, respectively.

Back in the United States, Treasury Secretary Janet Yellen warned that the US government would be strapped for cash to pay its bills around October without debt ceiling action. She also called on lawmakers to take the necessary steps to avoid an “economic catastrophe”. Uncertainty also remains over US President Joe Biden’s $ 4 trillion economic program.

Meanwhile, the focus will also be on iron ore after it drops below $ 100 per metric tonne for the first time in over a year. Voters will also vote later today in Canadian federal elections later today.