Asian stocks move higher after possibility of more rate hikes

HONG KONG - Most Asian stock markets edged higher Thursday after the Fed sounded a note of caution on the world economy and its effect on U.S.

See Full Article

growth but left the door open for continued rate hikes.

KEEPING SCORE: Japan's benchmark Nikkei 225 index rose 0.2 per cent to 17,196.30 and South Korea's Kospi edged up 0.1 per cent to 1,899.28. Hong Kong's Hang Seng climbed 0.4 per cent to 19,128.18 while the Shanghai Composite Index in mainland China lost 0.4 per cent to 2,726.07. Australia's S&P/ASX 200 advanced 0.7 per cent to 4,981.40. Markets in Taiwan and Southeast Asia rose.

POLICY PACE: The Federal Reserve issued a cautious assessment of the global economy while also downgrading its view of U.S. growth, after officials from the central bank wrapped up their latest policy meeting Wednesday. The Fed's December rate hike had raised expectations of several more increases this year, with the first as early as March. However, in their latest statement, officials suggested that if stock market turmoil and global economic weakness persist, they might reduce the pace of future interest rate hikes. Investors were disappointed, though, that officials did not commit outright to delaying the pace.

ANALYST VIEW: "In terms of the Fed overnight: It's clear that global central banks are now starting to be concerned about the impact of global growth worries and the latest plunge in oil prices in terms of meeting their inflation targets and as a result are now starting to sound more dovish," Shane Oliver, head of investment strategy at AMP Capital in Sydney, said in a report.

WALL STREET: Major U.S. benchmarks sank on the Fed's statement. The Dow Jones industrial average fell 1.4 per cent to 15,944.46 and the Standard & Poor's 500 dropped 1.1 per cent to 1,882.95. A slump in tech stocks hammered the Nasdaq composite index, which lost 2.2 per cent to 4,468.17.

ENERGY: Benchmark U.S. crude rose lost 31 cents to $31.99 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 85 cents, or 2.7 per cent, to close at $32.30 a barrel on Wednesday in New York. Brent crude, the benchmark for international oils, fell 29 cents to $33.64 a barrel in London.

CURRENCIES: The euro slipped to $1.0891 from $1.0905. The dollar rose to 118.82 yen from 118.46 yen.



Advertisements

Latest Economic News

  • DavidsTea swings to loss on charges but says e-commerce improving

    Economic CTV News
    MONTREAL - DavidsTea Inc. says it swung to a loss in its last quarter as onerous contract charges and impairments weighed on its balance sheet. The specialty tea retailer says it had a loss of $16.1 million for the fourth quarter ending Feb. Source
  • Rogers profit rises by more than a third to $425M

    Economic CBC News
    Rogers Communications Inc. reported a $425 million net profit in its first quarter, up 37 per cent from $310 million in the comparable period last year. The wireless, cable, internet and media company's adjusted earnings grew even more, rising by 45 per cent to $477 million under new accounting rules that Rogers began using in the quarter ended March 31. Source
  • Ottawa's new privacy rules give businesses flexibility on reporting data breaches

    Economic CTV News
    OTTAWA -- Federal data breach regulations set to take effect Nov. 1 will require mandatory reporting of security breaches that pose a "real risk of significant harm," but give businesses flexibility about how that's done. Source
  • Spat breaks out between Tim Hortons franchisee factions over public complaints

    Economic CBC News
    The Tim Hortons franchisee advisory board is slamming a group representing at least half of the brand's restaurant owners for publicly making complaints about their parent company Restaurant Brands International Inc. In a letter to franchisees obtained by The Canadian Press, the board argues that the comments by the Great White North Franchisee Association criticizing the company in the media and to the federal government is corrosive and damaging to the Tim Hortons brand. Source
  • Acacia Mining production drops 45 per cent as Tanzania troubles persist

    Economic CTV News
    TORONTO -- A subsidiary of Toronto-based Barrick Gold Corp. says gold production at its Tanzanian operations plunged 45 per cent last quarter as it grappled with export restrictions from the country. London-based miner Acacia Mining, owned 64 per cent by Barrick, says the drop in production resulted from reduced operations at its Bulyanhulu mine and producing mostly from lower-grade stockpiles at its Buzwagi mine. Source
  • Supreme Court beer ruling could apply to Alberta-B.C. pipeline war, experts say

    Economic CTV News
    CALGARY -- A Supreme Court of Canada ruling on bringing beer from Quebec into New Brunswick has implications for the trade war between Alberta and B.C. over the Trans Mountain pipeline expansion. Experts say the court seems to be addressing the issue in its decision when it notes that while some trade barriers can be allowed in some circumstances, those designed to punish another province or to protect a local industry would not be permissible. Source
  • High cost of dental services prompting some patients to seek alternative options

    Economic CBC News
    An unaffordable price tag kept Melanie Laxson out of the dentist's chair until the pain became unbearable. With no access to insurance, the 38-year-old says there's no way she could afford the full cost of a dentist. Source
  • Canadian airline profits will fall in 2018 on higher costs: Conference Board

    Economic CTV News
    MONTREAL - The Conference Board of Canada says the growth of the country's airline industry will slow in 2018 as profits are forecast to decrease from last year's peak primarily because of higher fuel and labour prices. Source
  • Commodities volatile on $100 US oil talk

    Economic CBC News
    Talk that Saudi Arabia has its sights on $80-$100 US a barrel oil again and of more U.S. sanctions on Russia ignited a rally in commodities and resource stocks on Thursday, though the potential boost to inflation hit fixed-income assets. Source
  • Commodities rollercoaster on $100 US oil talk, sanctions stress

    Economic CBC News
    Talk that Saudi Arabia has its sights on $80-$100 US a barrel oil again and of more U.S. sanctions on Russia ignited a rally in commodities and resource stocks on Thursday, though the potential boost to inflation hit fixed-income assets. Source