Asian markets swing as Fed worries offset China Covid easing

HONG KONG: Asian markets were mixed Tuesday as fresh fears that the US Federal Reserve will push interest rates higher than hoped played off against growing optimism over China’s economic reopening.
After a strong start to the week in the region, traders tracked a big drop on Wall Street that came on the back of data showing a forecast-busting jump in activity in the US services sector last month.
The news — combined with Friday’s bigger-than-expected print on November jobs — dented optimism that the Fed’s monetary tightening campaign was finally paying off, which would give it room to take a less hawkish approach into the new year.
Markets had been running higher ahead of the jobs figures after a surprise drop in inflation and comments from Fed boss Jerome Powell that the bank would likely raise rates at a slower pace.
“Outstanding news from the vast services-based US economy…

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