Asia’s share was largely high on Thursday after the Federal Reserve Board signaled that it might begin easing special support measures for the economy later this year.
Stocks rose in Hong Kong, Shanghai, Australia and Taiwan, but fell in South Korea and Malaysia. US futures were higher. The market in Tokyo was closed due to a holiday.
The US central bank has indicated that it may start raising benchmark 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 that it will begin to slow down the pace of monthly bond purchases “immediately.” The Fed buys 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 eased concerns about Chinese real estate developers with large debts and the potential spillover effects of possible defaults.
By early afternoon, Evergrande Group’s shares traded in Hong Kong had increased by 18%. They have lost about 80% of their value since the beginning of the year.
In Hong Kong, the Hang Seng Index rose 0.7% to 24,380.59. The Shanghai Composite Index was up 0.5% to 3,645.05. Australia’s S & P / ASX 200 surged 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 as the perception that it reduces the risk of the Evergrande raises sentiment,” said Jeffrey Halley of Oanda.
At a press conference, Federal Reserve Board Chair Jerome Powell said Wednesday that the Fed will begin reducing monthly bond purchases as early as November if the job market continues to improve steadily. Stated.
The S & P 500 rose 1% to 4,395.64, defeating four consecutive days of losing streak. The Benchmark Index initially rose 1.4% after the Federal Reserve Board issued a statement.
Other major indexes have also skyrocketed, but have 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 worked better than the wider market. The Russell 2000 Index rose 1.5% to 2,218.56.
Bond yields have risen primarily. After the announcement by the Federal Reserve Board, yields on 10-year government bonds fluctuated up and down, but remained stable at 1.31%. Yields affect interest rates on mortgages and other consumer loans.
September was a tough month for stocks. S & P 500 is down 2.8%.
Aside from concerns about the potential Fed policy shift, investors are worried about the rise 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 United States, United Kingdom and Europe will be released today and may provide insights into the company’s outlook.Unemployment allowance is also required in the United States
In another trade on Thursday, US benchmark crude rose 14 cents to $ 72.37 a barrel in electronic trading on the New York Mercantile Exchange. It rose from $ 1.74 to $ 72.23 per barrel on Wednesday.
International standard Brent crude was $ 75.54, up 15 cents per barrel.
The US dollar rose from 109.76 yen to 109.81 yen. The euro rose from $ 1.1691 to $ 1.1710.
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Asian Equity, Wall Street Log Increase After Fed Statement
Source link Asian Equity, Wall Street Log Increase After Fed Statement