Asia Stocks Fizzle Over Fed Uncertainty
Fahad Shabbir (@FahadShabbir) Published January 05, 2017 | 01:40 PM
HONG KONG, Jan 5, (UrduPoint / Pakistan Point News - 05th Jan, 2017 ) - Asian stocks drifted Thursday, as gains on Wall Street overnight were offset by questions over the US Federal Reserve's December meeting which signalled more US interest rate rises.
Tokyo finished flat with the benchmark index losing early gains as Japan's Currency strengthened against the dollar. Shanghai closed slightly up with a boost from oil shares on hopes that recently announced government reforms of the sector would benefit big players, dealers said.
Hong Kong was up more than one percent. US central bankers hinted Wednesday they may need to raise interest rates faster than planned due to "considerable uncertainty" linked to Donald Trump's fiscal stimulus plans, which could fan inflation, according to minutes of the final 2016 policy meeting at which the Fed lifted rates.
The president-elect's pledge to slash taxes and ramp up infrastructure spending could boost demand above sustainable levels, "potentially necessitating somewhat tighter monetary policy than currently anticipated," many participants in the December 13-14 meeting said.
Despite these risks, the minutes repeatedly said the central bank expects it can continue to make only "gradual adjustments" in the interest rate. The Dollar fell as the Fed minutes highlighted concerns about the impact of a strong currency on the new US administration's stimulatory economic policies.
The greenback changed hands at 115.89 Yen by close in Tokyo, down from 117.
27 yen in New York late Wednesday, with the weaker Japanese currency boosting sentiment among local exporters. Among Japanese shares, struggling auto parts maker Takata fell as investors cashed in after its shares surged on news last week of an expected settlement over a US criminal probe into exploding airbags.
Takata shares opened higher, soaring 22.44 percent at one point to 1,233 yen -- marking a more than a 100 percent rise since December 28 when they started climbing on hopes of a resolution. In oil markets, prices were flat after surging overnight on optimism that the world's major crude producers will deliver on a commitment to cut output and ease an oversupply of the commodity.
Traders shifted their focus to US commercial crude inventories data to be released later Thursday by the US Department of Energy, which is a closely watched gauge of demand in the world's top oil consuming nation.
- Key figures around 0830 GMT - Tokyo - Nikkei 225: DOWN 0.37 percent at 19,520.69 (close) Hong Kong - Hang Seng: UP 1.46 percent at 22,456.692 Shanghai - Composite: UP 0.21 percent at 3,165.41 (close) Euro/dollar: UP at $1.0555 from $1.0493 Pound/dollar: UP at $1.2340 from $1.2323 Dollar/yen: DOWN at 115.89 yen from 117.27 Oil - West Texas Intermediate: UP 3 cents at $53.29 per barrel Oil - Brent North Sea: FLAT at $56.46 per barrel New York - Dow: UP 0.3 percent at 19,942.16 (close) London - FTSE 100: UP 0.2 at 7,189.74 (close)
Related Topics
Recent Stories
Rock-solid Ruud racks up season-leading win in Barcelona
At UN, Iran says it will make Israel 'regret' reprisals
G7 hears calls for 'critical' Ukraine aid
EU seeks to leverage might to confront China, US challenge
5 Customs officials martyred as their vehicle ambushed by terrorists in D I Khan
Pak-New Zealand match called off due to rain
NHA restores traffic on roads affected by recent rains in Balochistan
China to fully support Pakistan's efforts against terrorism: Ambassador Jiang
U.S. envoy calls on Foreign Minister Ishaq Dar
Poland arrests man over suspected plan to kill Zelensky
EU wants to ease youth movement to and from UK
Police foils attempt of supply mainpuri raw material
More Stories From Business
-
Oil jumps more than 3% on Middle East worries
26 minutes ago -
Tokyo's Nikkei index tumbles 3% in morning trade
36 minutes ago -
Pakistan's total liquid foreign reserves reach $ 13.37 billion
11 hours ago -
Stock markets rise as traders consider US rate outlook
12 hours ago -
Business community alarmed by alleged Cigarette tax violations
12 hours ago -
High FED on cigarettes demonstrates positive impact
12 hours ago
-
PTCL posts 14 % revenue growth
12 hours ago -
Prudent policies, reforms poised to result in sustainable economic growth: Governor State Bank of Pa ..
13 hours ago -
ICCI resolute to turn Islamabad an ecofriendly city: Khalid Malik
12 hours ago -
Beijing's GDP up 6 pct in Q1
14 hours ago -
China's Q1 goods, services trade surplus exceeds 60 bln USD
14 hours ago -
Pakistan Stock Exchange (PSX) loses 43 points
15 hours ago