US data impacts Asian stocks and sees sharp decline; Understand

The last few weeks have been a time of close monitoring for global markets, especially with the release of important economic data and their impact on Asian stock markets. Recently, a US payrolls report showing an increase of 256.000 jobs in December triggered a series of events that directly impacted the performance of stocks in Asia.

The strengthening of the US dollar, reaching a two-year high against other major currencies, has been a key factor in this dynamic. This rise, driven by optimism about the US economy following the jobs report, has put pressure on Asian equity markets. The logic is simple: with a stronger dollar and rising US interest rates, capital tends to flow to the US in search of higher returns and safety, which ultimately drains liquidity from Asian markets.

As a direct consequence, we saw significant declines in important Asian indices. As the report da
According to the Financial Times, South Korea’s Kospi, for example, fell 1,1%, while India’s Sensex fell 0,8%. Hong Kong’s Hang Seng Index also declined 1,2%, and mainland China’s CSI 300 dropped 0,5%. These figures reflect investor concern that the region’s economy could slow as a result of capital flight.

The strength of the US economy, evidenced by employment data, puts pressure on the Federal Reserve (Fed) to keep interest rates high for longer, which intensifies the flow of capital to the US and negatively impacts emerging markets, such as those in Asia.

Bitcoin Today 13/01/2025: BTC Price Retracts to $90K Amid Market Crash

O Bitcoin price today 13/01/2025 is showing a significant pullback of over 3% that has seen the asset fall to the $90k zone. Today, the cryptocurrency market is experiencing a sharp decline, with all major assets trading in the red. ETH, XRP, SOL, DOGE, ADA are recording corrections of over 5% in the last 24 hours.

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Wall Street’s major indexes posted significant declines on Friday, with the SP 500 hitting its lowest level in a week. The move came in response to the latest U.S. jobs report, which surprised markets and sparked fresh concerns about inflation and the Federal Reserve’s monetary policy expectations.

According to the report, December saw the creation of 256.000 new jobs, surpassing projections that expected 165.000 jobs. This increase suggests continued strength in the labor market, contradicting earlier expectations of a slowdown that would help mitigate inflationary pressures.