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Asia-Pacific markets are mixed as investors seek direction

Asia-Pacific markets are mixed as investors seek direction
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SINGAPORE – Australian shares rose more than 1% while markets in Hong Kong and South Korea were lower on Monday ahead of this week’s central bank decisions in Australia and Malaysia.

That S&P/ASX200 up 1.26% with banking and retail stocks in the green.

Markets in Japan and mainland China were also higher.

That Nike 225 in Japan pared earlier gains to trade 0.54% higher, while the Topix index was up about 1%.

In China it is Shanghai composition gained 0.14% and the Shenzhen component increased by 0.9%.

We’ll probably bump along the bottom, maybe a little further down from here.

Dan Feinman

Co-Head of Asia Pacific Equity Strategy, Credit Suisse

Hong Kong and South Korea stocks fell.

That Hang Seng Index closed on Friday and slipped as much as 1.8% in early trade on Monday. Most recently, it was down 0.59%.

Exchange-traded funds will be included in the equity link system linking Hong Kong and mainland China from Monday.

South Korea kospi initially struggled for direction and was last down 0.91% while the Kosdaq was down 1.92%.

MSCI’s broadest index of Asia Pacific equities outside of Japan traded 0.13% lower.

In Southeast Asia, Indonesia’s Jakarta Composite fell 2.54%.

Dan Fineman, co-head of Asia Pacific equity strategy at Credit Suisse, said markets appear to have adequately priced in the magnitude of upcoming Fed hikes, but the “very high risk of recession” means markets are unlikely to rise .

“I think the worst is behind us. We’ll probably bump into the bottom, maybe a little further down, but I don’t think the difficulties of the first half will be repeated to the same extent in the second half.” he told CNBC’s Street Signs Asia on Monday.

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Currencies and Oil

That US dollar indexwhich tracks the greenback against a basket of its peers was 105.143.

“The possibility of 75 basis point hikes in the June and July meetings keeps the USD strong near-term, but we maintain our core view that dollar strength will fade later in the year,” wrote Richard Yetsenga, chief economist at ANZ, in a Notes for Monday.

That Japanese yen was trading at 135.14 per dollar, rising from levels as weak as 137 per dollar last week. That Australian dollar traded at $0.6806 after recently recovering from below $0.679.

Oil futures fell in afternoon trade in Asia. US Crude Oil Futures lost 0.22% to $108.19 a barrel while Brent crude oil Futures slipped 0.21% to $111.39.

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