Asian equities opened lower on Tuesday as investors focused on the possibility of sustained global interest rate hikes. Hong Kong’s Hang Seng index fell 2.8%, while Japan’s Topix shed 1.1% following the reopening of trading after a holiday. Markets in mainland China and South Korea were closed for holidays. In other news, WeWork disclosed that it had skipped $95mn of interest payments, as it seeks to negotiate with its creditors and landlords to cut its financial obligations. The UN Security Council has authorised a security mission to fight gangs in Haiti, while the EU nominee for climate chief proposed global fossil fuel taxes to fund a fund to help developing countries affected by carbon pollution. Oil prices also fell to a three-week low on concerns over high interest rates impacting fuel demand, and US stocks ended higher as a late rally in Big Tech lifted the S&P 500.
In Asia, equities opened lower as investors grew concerned about the prospect of continued global interest rate hikes. The Hang Seng index in Hong Kong decreased by 2.8%, while Japan’s Topix dropped 1.1%. However, mainland China and South Korea’s markets were closed for holidays. Additionally, WeWork announced that it had missed $95 million in interest payments, an indication of its dire financial position as it attempts to negotiate with creditors and landlords. Furthermore, the UN Security Council approved a security mission to combat gangs in Haiti, with Kenya leading the mission and the US providing backing without sending troops.
The EU nominee for climate chief, Wopke Hoekstra, proposed a global tax on fossil fuels, including those used in the airline and shipping industries, in order to create a fund to help developing countries affected by carbon pollution. This suggestion aims to stimulate international discussions on the matter. Meanwhile, oil prices fell to a three-week low due to concerns that prolonged periods of high interest rates could impact economic growth and reduce demand for fuel. Lastly, US stocks ended the day higher following a late rally in Big Tech shares, with the S&P 500 closing fractionally higher and the Nasdaq Composite rising by 0.7%.
In summary, Asian equities opened with losses as investors focused on global interest rate hikes, WeWork missed interest payments, the UN Security Council authorized a mission to combat gangs in Haiti, fossil fuel taxes were proposed to aid developing countries affected by carbon pollution, oil prices dropped on fears of reduced fuel demand, and US stocks finished higher due to a late rally in Big Tech.