Asian stocks slide as Fed jitters outweigh positive Chinese data

By Ambar Warrick -- Most Asian stock markets sank on Tuesday as fears of hawkish signals from a Federal Reserve meeting this week largely outweighed data showing that Chinese business activity rebounded in January.

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 1% and 0.5%, respectively, even as government data showed Chinese manufacturing and services activity rebounded sharply into expansion territory in January.

The reading indicates that the relaxing of anti-COVID curbs in the country is having a positive effect on the economy, and is likely to spur a broader recovery later this year. Chinese bourses were also set to gain for a third consecutive month, albeit slightly.

Technology-heavy indexes in Asia were the worst performers for the day, as an overnight rout in U.S. heavyweights spilled over. Hong Kong’s Hang Seng index lost 1%, while South Korea’s KOSPI and the Taiwan Weighted index shed 0.7% and 1.3%, respectively.

Tech stocks were rattled by anticipation of the Fed meeting, with the central bank set to hike rates by 25 basis points on Wednesday. But markets are wary of any hawkish signals from the Fed, given that recent signs of resilience in the U.S. economy give the central bank more headroom to keep raising interest rates.

Losses in Japan’s Nikkei 225 were somewhat limited, after data showed that retail sales grew more than expected in December. The reading indicates that despite a slowdown in Japan’s industrial sector, non-manufacturing businesses still remain resilient.

Japanese stocks were also among the best performers in Asia for January, up nearly 5% after the Bank of Japan ducked market expectations and kept its yield curve control policy unchanged.

Australia’s ASX 200 index fell 0.2%, as substantially weaker than expected retail sales data brewed more concerns over the economy, which is facing increased headwinds from rising inflation and high interest rates.

India’s Nifty 50 and BSE Sensex 30 indexes sank about 0.4% each, even as a rout in the shares of companies under the Adani Group (NS:ADEL) appeared to have eased. Local markets turned jittery in anticipation of the 2023 budget, which is set to be released on Wednesday.

Losses in Adani and stocks linked to the conglomerate put Indian shares on course to vastly underperform their Asian peers in January. The Nifty 50 was set to lose 3.1%, while the BSE Sensex 30 was down 2.7% this month.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: