Asian stocks, Wall Street Journal increase after Fed statement
Asia’s share was largely high on Thursday after the Federal Reserve signaled it could start easing special measures to support the economy later this year.
Shares rose in Hong Kong, Shanghai, Australia and Taiwan, but fell in South Korea and Malaysia. US futures were higher. The Tokyo market has been closed due to a public holiday.
The US central bank has indicated that it could start raising its key rates by the end of next year, earlier than expected three months ago. He added that if the economy continues to improve, it is likely to start slowing the pace of monthly bond purchases “immediately”. The Fed is buying bonds throughout the pandemic to keep long-term interest rates low.
The market was reassured after Evergrande, one of China’s largest private real estate developers, said it would pay on Thursday. This may have allayed concerns about heavily indebted Chinese real estate developers and the potential ripple effects of possible defaults.
By early afternoon, Evergrande Group shares traded in Hong Kong had risen 18%. They have lost around 80% of their value since the start of the year.
In Hong Kong, the Hang Seng index rose 0.7% to 24,380.59. The Shanghai Composite Index rose 0.5% to 3,645.05. The Australian S & P / ASX 200 jumped 1% to 7,372.80. South Korea’s Kospi fell 0.4% to 3,075.15.
“The Asian stock market is having a good day because the perception that it reduces the risk of Evergrande increases sentiment,” said Jeffrey Halley of Oanda.
In a press conference, Federal Reserve Chairman Jerome Powell said on Wednesday that the Fed will start cutting monthly bond purchases as early as November if the labor market continues to improve steadily. Declared.
The S&P 500 rose 1% to 4,395.64, beating four straight days of straight losses. The benchmark index first rose 1.4% after the Federal Reserve issued a statement.
Other major indexes also skyrocketed, but lost some of their profits. The Dow Jones Industrial Average rose 1% to 34,258.32. The Good Equity index temporarily rose 520 points. The Nasdaq Composite Index rose 1% to 14,896.85.
Small stocks have performed better than the market at large. The Russell 2000 Index rose 1.5% to 2,218.56.
Bond yields mostly increased. After the Federal Reserve’s announcement, 10-year government bond yields fluctuated up and down, but held steady at 1.31%. Yields affect the interest rates on mortgages and other consumer loans.
September was a difficult month for stocks. The S&P 500 is down 2.8%.
In addition to concerns about the potential change in Fed policy, investors are concerned about the increase in COVID-19 cases due to the impact of highly contagious delta mutations and rising inflation on businesses and consumers. I am.
Preliminary manufacturing data for the US, UK and Europe will be released today and may provide a snapshot of the company’s outlook. Unemployment benefit is also required in the United States.
In another trade Thursday, benchmark U.S. crude rose 14 cents to $ 72.37 a barrel in electronic trading on the New York Mercantile Exchange. It went from $ 1.74 to $ 72.23 a barrel on Wednesday.
International standard Brent crude was $ 75.54, up 15 cents a barrel.
The US dollar fell from 109.76 yen to 109.81 yen. The euro went from $ 1.1691 to $ 1.1710.
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