Asian stocks wobble on concerns over possible Federal Reserve rate hike

TOKYO - Asian shares meandered Tuesday as jittery investors took cues from gains on Wall Street but volatility remained high ahead of Federal Reserve and Bank of Japan policy meetings.

See Full Article

KEEPING SCORE: Japan's Nikkei 225 stock index fell 1.1 per cent to 18,670.76 as the yen rose against the U.S. dollar. Australia's S&P/ASX 200 fell 0.2 per cent to 4,919.30, but most other major markets gained. Hong Kong's Hang Seng rose 0.5 per cent to 21,406.08 and the Shanghai Composite added 0.1 per cent to 3,523.66. South Korea's Kospi was up 0.2 per cent at 1,930.96. Markets in New Zealand, Taiwan rose and shares in Southeast Asia were mostly lower.

THE FED: The Federal Reserve begins its last meeting of the year on Tuesday, and is expected to raise interest rates for the first time in almost a decade on Wednesday. The Fed's key short-term interest rate has been close to zero since Dec. 16, 2008. A rate hike would signal confidence in the U.S. economy, but some investors worry it may slow growth.

JAPAN STIMULUS: Mixed economic data for Japan are keeping alive, though just barely, hopes for more stimulus from the Bank of Japan to help spur the recovery. But most economists do not expect such a move at the policy meeting that wraps up on Friday.

THE QUOTE: "A combination of taut nerves and thin markets may mean an unseasonal increase in market volatility over the coming weeks," Michael McCarthy of CMC Markets said in a commentary, noting that a rate hike is still uncertain. "Although markets are prepared for a rate rise, the disparity in forecasts may mean there is still a strong reaction in trading," he said.

WALL STREET: After an indecisive day that followed a dismal week, stocks turned around in the last minutes of trading Monday and managed to end with modest gains. The Dow Jones industrial average picked up 103.29 points, or 0.6 per cent, to 17,358.50. The S&P 500 index gained 9.57 points, or 0.5 per cent, to 2,021.94. The Nasdaq composite index added 18.76 points, or 0.4 per cent, to 4,952.23.

ENERGY: The price of U.S. crude oil fell below $35 a barrel on Monday for the first time since early 2009 but then rebounded to gain about 2 per cent, or 69 cents, to $36.31 a barrel. In Asia on Tuesday, U.S. crude lost 5 cents to $36.26 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, fell 18 cents to $37.98.

CURRENCIES: The dollar edged lower, to 120.91 yen from 121.09 yen in the previous session. The euro rose to $1.1020 from $1.0994.



Advertisements

Latest Economic News

  • Asian stocks drop after big sell-off

    Economic CTV News
    HONG KONG - Asian stock markets were mostly lower Friday with investors finding little guidance with Wall Street closed for the Thanksgiving holiday and Chinese markets in focus after a big sell-off the previous day. Source
  • Stores hope deals, excitement draw shoppers for Black Friday

    Economic CTV News
    NEW YORK - Stores are hoping deals and excitement bring shoppers to stores and to their sites for Black Friday, one of the biggest shopping days of the year. But Black Friday has morphed from a single day when people got up early to score doorbusters into a whole season of deals, so shoppers may feel less need to be out. Source
  • TransCanada: Over 24K gallons of oil recovered from spill

    Economic CTV News
    AMHERST, S.D. -- TransCanada Corp. says it has recovered more than 24,000 gallons of oil from the site of a pipeline leak discovered last week in South Dakota. The company said 24,450 gallons of oil had been recovered as of Wednesday. Source
  • Aurora Cannabis buying greenhouse designer Larssen to push pot partnership plans

    Economic CBC News
    Aurora Cannabis Inc. says it intends to use its ownership of greenhouse design firm Larssen Ltd. to pressure other cannabis producers to enter partnerships that will further its aggressive growth plans. In a news release, the Alberta-based cannabis producer said Larssen is involved with more than 15 cannabis industry clients globally, including five Canadian licensed producers, but the Canadian deals will be reassessed once the buyout announced Thursday is completed. Source
  • Canadian house prices 50% overvalued compared to rents: OECD

    Economic CBC News
    Canada leads the world in terms of household debt levels, and it's a major risk to the country's economy, the OECD says in a new report. In a chapter of a report set to come out next month that has been released in advance, the Organization for Economic Co-operation and Development says that while virtually all countries saw their debt loads increase in the years leading up to the credit crisis of 2007, most have seen their indebtedness decrease over time. Source
  • Uber hack latest example of why vigilance required to keep your wallet safe

    Economic CBC News
    When Doug Hoyes had his credit card information stolen, fraudsters used it to pay for three taxi rides in Toronto. He wasn't in that city, but discovered the charges while routinely checking his card transactions online and notified his bank, which cancelled the card. Source
  • Security alert: How vigilance can keep contents of your wallet safe

    Economic CTV News
    OTTAWA -- When Doug Hoyes had his credit card information stolen, fraudsters used it to pay for three taxi rides in Toronto. He wasn't in that city, but discovered the charges while routinely checking his card transactions online and notified his bank, which cancelled the card. Source
  • Canadian drug-maker accused of abusing market dominance

    Economic CTV News
    OAKVILLE, Ont. -- Britain's competition regulator is accusing Canadian specialty drug company Concordia International Corp. of overcharging for a thyroid drug after raising the price by nearly 6,000 per cent between 2007 and 2017. In a statement of objections, the Competition and Markets Authority is alleging Concordia abused its market dominance in the supply of liothyronine tablets. Source
  • Regulator investigating Sears Canada liquidation sale prices: monitor

    Economic CTV News
    TORONTO -- The Competition Bureau is investigating allegations that prices on some merchandise were marked up ahead of the liquidation sales at Sears Canada that began last month, the court-appointed monitor overseeing the retailer says. Source
  • Sears Canada liquidation sale pricing under investigation

    Economic CTV News
    TORONTO -- The Competition Bureau is investigating allegations that prices on some merchandise were marked up ahead of the liquidation sales at Sears Canada that began last month, the court-appointed monitor overseeing the retailer says. Source