Asian shares higher on signs of U.S. Fed slowdown, China stimulus

11/24/2022 6:45:00 AM

Asian shares higher on signs of U.S. Fed slowdown, China stimulus

Asian shares higher on signs of U.S. Fed slowdown, China stimulus

Asian shares tracked Wall Street higher on Thursday, buoyed by signals the U.S. Federal Reserve may slow the pace of interest rate hikes and news of fresh economic stimulus from China, with the dollar failing to recoup losses.

(.BANGKOK — Hong Kong’s Hang Seng index HK:HSI surged 0.BEIJING — Wall Street’s benchmark S&P 500 index declined for another day after a Federal Reserve official rattled investors last week by saying already-elevated interest rates might have to go higher than expected to stop surging inflation.The dollar pulled back from strong overnight gains while oil took a pause from Monday's retreat.

N225) surged 1.3%.5%.S&P 500 futures were up 0..2%, while Nasdaq futures rose 0.5%, while the Shanghai Composite index CN:SHCOMP slipped 0.3%, after modest gains in U.MIAPJ0000PUS) recovered earlier losses to inch 0.

S.Benchmarks rose in Taiwan TW:Y9999 and Indonesia ID:JAKIDX, but stocks fell in Singapore SG:STI.“Fears over China’s COVID situation are putting pressure on the global outlook for demand,” Anderson Alves of ActivTrades said in a report.stocks on Wednesday.On Thursday, slowed down the pace of tightening to a more modest 25 basis points, joining other central banks that have downshifted away from outsized hikes amid a looming global recession.New.Minutes of the U.7%.S..HSI) narrowed to 0.

Federal Reserve's last meeting also showed a " substantial majority " of Fed policymakers agreed it would "likely soon be appropriate" to slow the pace of interest rate hikes."In all, it is clear from the minutes that FOMC participants are determined to further raise the policy rate in the face of a very tight labour market and unacceptably high inflation," said analysts at Barclays.4% and the Kospi 180721 in Seoul rose 0.8%."However, the minutes also reveal an emerging divergence of views among members about the peak rate, and uncertainty about the peak rate." The futures market implies a 76% chance of a rise of 50 basis points to 4.In Sydney, the S&P/ASX 200 XJO climbed 0.25%-4.7%.The fact China has showed movement away from on zero COVID is "very significant" but it has been drowned out by the latest new on resurgence of cases in Beijing, said Ray Attrill, head of FX strategy, National Australia Bank.

5% at the December meeting, while a majority of investors expect the target U.2%.S.federal funds rate will peak above 5% by next May.Markets were closed in Japan for a holiday.4% to 3,949.U.S.25%, striving to rein in inflation that is now at 7.Australian shares rose 0.

economic data on Wednesday showed jobless claims increased more than expected last week, while business activity contracted for a fifth month in November.1% to 11,024.In Japan, manufacturing activity contracted at the fastest pace in two years in November.It’s the first time the bank has raised rates by more than a half-point since introducing the Official Cash Rate in 1999.Meanwhile, in China, , with the economic toll from mobility restrictions and lockdowns piling up.China's cabinet on Wednesday flagged the possibility of an upcoming cut to banks' reserve requirement ratio (RRR), pledging new stimulus measures to revive its COVID-battered economy.On Tuesday, the S&P 500 SPX rose 1.1% at 33,700.The U.inflation has peaked and can fall significantly in 2023, together with China and Europe developments, convince us a USD depreciation cycle is now in train," they said in a note on Tuesday.

S.58 and the Dow Jones Industrial Average DJIA added 1.dollar on Thursday failed to recoup overnight losses of 1% with the index standing at 105.China’s ruling Communist Party promised this month to reduce the economic impact of its “Zero COVID” strategy, which aims to isolated every case, by changing quarantine and other rules.89 against a basket of currencies.10.In the oil market, prices are set to test a major support level from September, which if breached could see oil tumbling to levels not seen before late 2021, adding to the evidence that inflation likely has started coming down.U.4% to 11,174.2%.Oil prices rose on Tuesday, a day after Saudi Arabia denied a media report that it was discussing an increase in oil supply with OPEC and its allies.

S.crude oil futures eased 0.Long-term Treasury yields fell.2% to $77.Bond yields fell.79 per barrel, after tumbling more than 3% on Wednesday, as the Group of Seven (G7) nations considered a price cap on Russian oil above the current market level.76% from 3.Brent crude futures fell 0.33 per barrel and Brent was at $87.

15% to $85.The Federal Reserve will release minutes Wednesday from its latest policy meeting, potentially giving investors more insight into its decision-making process.83% late Friday.26.In the bond market, long-term U.Its benchmark rate currently stands at 3.S.markets close Thursday for the Thanksgiving holiday and have a shortened trading day Friday.Treasuries rallied overnight after the Fed minutes.“Ahead of the release of Fed minutes, much focus has been placed on a slowing down on the pace of rate hikes,” Mizuho Bank said in a commentary.91 an ounce.

Yields on 10-year notes dropped to a huge 79-basis-points deficit to two-year yields, a curve inversion on a scale not seen since the dot.com bust of 2000 and, on the face of it, a signal investors expect a deep economic downturn in coming months.” Investors have very little other news to review this week, but several retailers and technology companies are closing out the latest round of corporate earnings with their financial results.They expect the Fed to raise rates again at its December meeting but by one-half percentage point after four hikes of 0.U.S.That raises the risk it could go too far in slowing economic growth and bring on a recession.markets are closed for the Thanksgiving holiday on Thursday.Louis Federal Reserve Bank, James Bullard, dashed hopes the Fed might be easing off rate hike plans.

Reporting by Stella Qiu; Editing by Tom Hogue Our Standards:.Russia’s war in Ukraine continues threatening energy supplies and key food commodities including wheat.

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