Money & Finance

Asian stock markets show mixed performance ahead of crucial US employment data. Investors are closely watching August job figures that could influence Federal Reserve's monetary policy and interest rate strategy amid high inflation concerns. Shanghai and Seoul saw gains, while Tokyo and Hong Kong experienced declines.

Eurozone consumer prices surged to a record 7.5% in March, marking the highest inflation rate since 1997. Rising energy and food costs, fueled by the conflict in Ukraine, are squeezing household budgets and forcing central banks to consider aggressive monetary policy responses.

Singapore's core consumer price index rose 2.2% in February, lower than expected, but authorities warn of potential inflation pressures from global supply constraints and geopolitical tensions. The Monetary Authority of Singapore suggests ongoing challenges despite anticipated easing of external supply issues in the second half of 2022.

British inflation surged to 6.2% in February, the highest since 1992, driven by soaring energy bills and petrol prices. The Office for National Statistics reports widespread food price increases, intensifying financial pressure on households and creating challenges for the government's economic strategy.

Asian shares gained ground on Wednesday, with Japan's Nikkei 225 jumping 1.7% and Hong Kong's Hang Seng rising 2.1%. Investors are anticipating the U.S. Federal Reserve's expected 0.25 percentage point interest rate increase, marking the first hike since 2018.

Wall Street and European stocks decline as investors worry about economic recovery pace, COVID-19 Delta variant impact, and recent US job market data. Central bank policies and reopening economies remain key market drivers.

Moody's reports global Sukuk issuance will remain flat in 2023 after five years of growth. Higher crude prices reduce Gulf governments' financing needs. Southeast Asian markets like Malaysia and Indonesia drive first-half issuance, with a 3% increase to US$102 billion, while Gulf region volumes decline.

In early 2021, the stock market initially showed promise with rising commodity prices and global economic recovery hopes. The Delta variant disrupted market momentum, causing the MSCI emerging market index to slip. Recently, foreign investors injected nearly RM1 billion into equities, helping the local benchmark index FBM KLCI recover approximately half its previous losses.

Bank Negara Malaysia's international reserves rose to US$111 billion as of June 15, with foreign exchange reserves at US$99.6 billion, providing robust financial coverage for imports and short-term foreign debt.

Japanese Prime Minister Shinzo Abe announced a nearly $1 trillion stimulus package totaling 108 trillion yen to protect the economy from coronavirus damage. The relief package represents 20% of GDP and is twice the size of the 2008 financial crisis package, highlighting the government's serious response to the pandemic.