SHANGHAI, May 26 ― Asian share markets slipped today after minutes from the Federal Reserve's early May meeting showed a majority backing half-percentage-point rate hikes in June and July, and as persistent concerns over global growth sapped confidence.

While the minutes also highlighted policymakers' faith in the strength of the US economy, helping lift the mood on Wall Street overnight, sentiment in equity markets remains fragile after weeks of volatile trade as more global central banks continue on the path of tightening.

“I don't think the global economy is at the risk of a slowdown, I think we are slowing down. And for that reason, the potential for good investments right now is predominately on the short side,” Barbara Ann Bernard, CIO of Wincrest Capital, a global long/short equity strategy hedge fund, told the Reuters Global Markets Forum.

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South Korea's central bank today raised interest rates for a second consecutive meeting as it grapples with consumer inflation at 13-year highs.

All participants at the Fed's May 3-4 meeting supported a half-percentage-point rate increase ― the first of that size in more than 20 years ― and “most participants” judged that further hikes of that magnitude would “likely be appropriate” at the Fed's policy meetings in June and July, according to minutes from the meeting.

The minutes reflected agreement among policymakers on the strength of the US economy, tightness of the labour market and high inflation, with global supply problems, the Ukraine war, and continued coronavirus lockdowns in China skewing inflationary risks “to the upside”.

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Lingering investor concern over those factors dragged MSCI's broadest index of Asia-Pacific shares outside Japan down 0.54 per cent after trading higher early in the morning.

Chinese blue-chips fell 1.11 per cent despite another drop in daily Covid-19 cases in the country, where lockdowns aimed at curbing the spread of the virus threaten to undermine recent economic support measures.

China will strive to achieve reasonable economic growth in the second quarter and stem rising unemployment, the official Xinhua news agency quoted Premier Li Keqiang as saying yesterday.

Australian shares slipped 0.47 per cent while Japan's Nikkei stock index reversed earlier gains to fall 0.13 per cent.

Seoul's Kospi was 0.25 per cent higher after the central bank rate announcement came in line with expectations.

The falls in Asia contrast with a more upbeat mood on Wall Street, where the Dow Jones Industrial Average rose 0.6 per cent, the S&P 500 gained 0.95 per cent and the Nasdaq Composite added 1.51 per cent.

“I think the market is looking to stabilise here and looking a little bit forward to the point where the Fed can start to issue some different guidance and say the economy has slowed enough that they don't see the need to continue to raise rates,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

After rising yesterday following the Fed minutes, the dollar was little changed in Asia trade. It was barely changed against the yen at 127.27, while the euro gained 0.11 per cent to 1.0692 per cent.

The dollar index, which tracks the greenback against a basket of major peers was just 0.03 per cent lower at 102.02.

Moves in US Treasury yields were also muted. The 10-year yield edged up to 2.7577 per cent from a close of 2.747 per cent, and the policy-sensitive two-year yield was flat at 2.506 per cent.

Crude oil was steady after a cautious rally this week, with Brent crude flat at US$114.03 (RM501.44) per barrel and US crude up 0.13 per cent at US$110.47.

Spot gold was down 0.2 per cent at US$1,849.19 per ounce. ― Reuters