Asian stocks rise on prospect of gradual interest rate increase

TOKYO - Asian stocks posted broad gains Thursday after the Federal Reserve ended protracted uncertainty in markets by raising interest rates for the first time in nearly a decade and signalling that further increases will be gradual.

See Full Article

KEEPING SCORE: Japan's Nikkei 225 jumped 2 per cent to 19,424.99 and Hong Kong's Hang Seng rose nearly 1 per cent to 21,906.35. South Korea's Kospi added 0.2 per cent to 1,973.14. Australia's S&P/ASX 200 advanced 1.6 per cent to 5,107.20. China's Shanghai Composite gained 1.5 per cent to 3,567.31. Benchmarks in Taiwan, New Zealand and Southeast Asia also rose. The dollar gained against Asian currencies. It was up 0.5 per cent against the Korean won and gained 0.2 per cent versus the Indian rupee and Indonesia rupiah.

FED, FINALLY: The Federal Reserve raised its main interest rate by a quarter of a point, a move that was widely anticipated in the markets. That rate had been near zero for seven years to foster an economic recovery after the U.S. mortgage crisis that sparked a global recession. The rate hike was a long-expected vote of confidence in the U.S. economy, which is the world's biggest and a crucial market for exporters in trade-reliant Asia. At the same time investors were encouraged that the Fed emphasized that further increases will be gradual.

THE QUOTE: The rate hike "signals confidence in the ongoing recovery in the U.S. economy after the Great Financial Crisis," said Shane Oliver, head of investment strategy at AMP Capital. "Given ongoing deflationary risks and slow global growth, future Fed hikes are likely to be cautious and gradual," he said a report. "Global shares are likely to resume their rising trend but with U.S. shares as a relative underperformer. Bond yields are likely to remain low which should be positive for real assets."

ENERGY: Benchmark U.S. crude was down 10 cents at $35.42 a barrel in electronic trading on the New York Mercantile Exchange. The futures contract dropped $1.83, or 4.9 per cent, to close at $35.52 in New York on Wednesday. Brent crude, a benchmark for international oils, was down 16 cents at $37.23 a barrel in London. It lost $1.26, or 3.3 per cent, to $37.19 in the previous session.

MAJOR CURRENCIES: The euro was little changed at $1.0836 from $1.0884 in the previous trading session. The dollar rose to 122.58 yen from 122.41 yen.



Advertisements

Latest Economic News

  • Uber executive out after failing to disclose sexual harassment allegation: report

    Economic CTV News
    NEW YORK - A top engineering executive at Uber, Amit Singhal, is out five weeks after his hire was announced. According to a report in the tech blog Recode, he failed to disclose that he'd left his previous job at Google because of a sexual harassment allegation. Source
  • Bell Media names Randy Lennox president after Mary Ann Turcke leaves

    Economic CBC News
    Bell Media has named Randy Lennox as its president following the departure of Mary Ann Turcke for a new opportunity with the NFL. Lennox, a former executive at Universal Music Canada, joined the media giant in August 2015 as president of entertainment production and broadcasting. Source
  • Bell Media names Randy Lennox as new president

    Economic CTV News
    MONTREAL - Bell Media has named Randy Lennox as its president following the departure of Mary Ann Turcke for a new opportunity with the NFL. Lennox, a former executive at Universal Music Canada, joined the media giant in August 2015 as president of entertainment production and broadcasting. Source
  • Are loyalty programs even worth it anymore?

    Economic CTV News
    MONTREAL -- The value of customer loyalty programs is under increased scrutiny by companies and users in the wake of Air Miles' recent reversal of an unpopular expiration policy. The operator of the shopper reward program, LoyaltyOne, angered many members last year with its proposal to void unused Air Miles after five years, only to abandon that plan weeks before it was to take effect. Source
  • Manulife admits fine by money-laundering watchdog Fintrac

    Economic CTV News
    TORONTO -- Manulife Financial Corp. confirmed Monday its banking unit was penalized last year after Canada's money-laundering watchdog concluded it failed to report a suspicious transaction and various money transfers. Last year, Fintrac fined the bank $1.15 million, but it withheld the bank's identity, saying it was exercising its discretion to do so. Source
  • B.C. increasing minimum wage to $11.35

    Economic CTV News
    VICTORIA - The minimum wage in British Columbia will rise by 50 cents to $11.35 an hour in mid-September. The ministry says there will be an identical increase of 50 cents to the minimum wage for liquor servers, bringing it to $10.10 per hour in September. Source
  • 5 billion mobile phone users projected for 2017: study

    Economic CTV News
    With populations in Asia on the rise, the number of mobile phones, which stood at 4.8 billion a year ago, should mushroom to 5.7 billion, or three quarters of the world's population, by 2020. The number of mobile phone users globally will surpass five billion by the middle of this year, according to a study released Monday by GSMA, the association of mobile operators. Source
  • Behold the KEYone: Last BlackBerry-designed phone with a physical keyboard

    Economic CTV News
    TORONTO - Fans of BlackBerry's classic physical keyboard will have reason to celebrate when the last product designed in part by the former smartphone leader becomes available in April. The Waterloo, Ont.-based firm played a role in developing the KEYone, named for the return of the QWERTY keyboard that other smartphone designers have mostly long retired. Source
  • Manulife revealed as bank FINTRAC fined $1.15M for anti-money laundering failures

    Economic CBC News
    The head of Canada's top financial crime watchdog is second-guessing his decision last year to withhold the name of a Canadian bank — which CBC Investigates has identified — fined $1.15 million for violating the federal anti-money laundering and terrorist financing act. Source
  • Manulife revealed as bank fined $1.15M for violating anti-money laundering reporting rules

    Economic CBC News
    The head of Canada's top financial crime watchdog is second-guessing his decision last year to withhold the name of a Canadian bank — which CBC Investigates has identified — fined $1.15 million for violating the federal anti-money laundering and terrorist financing act. Source