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

  • Facebook hits 2 billion users, doubling in size since 2012

    Economic CBC News
    Facebook Inc. said on Tuesday that 2 billion people are regularly using its flagship service, marching past another milestone in its growth from a college curiosity in the United States to the world's largest social media network. Source
  • Royal Bank to repay investors $21.8M for mistakenly charged investment fees

    Economic CTV News
    TORONTO - The Royal Bank of Canada (TSX:RY) has agreed to a deal with Ontario's securities watchdog to repay $21.8 million to clients who were mistakenly charged some investment fees. The Ontario Securities Commission approved Tuesday the no-contest settlement agreement with RBC Dominion Securities Inc. Source
  • Royal Bank to pay back $22M in investment fees it overcharged

    Economic CBC News
    The Ontario Securities Commission says the settlement comes after a compliance review in 2015 found the bank had overcharged some of its customers 'excess fees,' for their investments. (Mark Blinch/Reuters) The Royal Bank of Canada will pay almost $22 million in compensation to clients who were charged excess fees on some mutual funds and investments products. Source
  • Ransomware is infecting computers all across Europe in another major attack

    Economic CBC News
    A major ransomware attack on Tuesday hit computers at Russia's biggest oil company, the country's banks, Ukraine's international airport as well as global shipping firm A.P. Moller-Maersk. Moscow-based cybersecurity firm Group IB said hackers had exploited code developed by the U.S. Source
  • World's first ATM turns to gold on 50th birthday

    Economic CBC News
    Five decades since it heralded a transformation in the way people obtained and used cash, the world's first ATM was turned into gold for celebrations of its fiftieth anniversary. The brainchild of Scottish inventor John Shepherd-Barron, the first ATM (automated teller machine) was opened on June 27, 1967 at a branch of Barclays bank in Enfield, north London, the first of six cash dispensers commissioned by the bank. Source
  • Bring the brew to you: Beer Store launches home delivery in Ottawa, Scarborough

    Economic CTV News
    TORONTO - The Beer Store is now offering home delivery in two Ontario communities. Customers in Ottawa and the Toronto suburb of Scarborough can now place an order online and have their purchases delivered within two hours. Source
  • Uber makes it easier to arrange trips for other riders

    Economic CTV News
    SAN FRANCISCO -- Uber's ride-hailing app is making it easier for its users to set up trips for seniors and others who may not know their way around a smartphone but still need help getting around town. Source
  • No security risks in Chinese takeover of Canadian satellite firm: Trudeau

    Economic CBC News
    ?Prime Minister Justin Trudeau is making his strongest defence yet of his government's decision to allow a Chinese telecom giant to take over a Canadian satellite technology company. Trudeau says an initial government review of the takeover, required under federal law, unearthed no significant national security risk and didn't require any further reviews, allowing the deal to be allowed to proceed. Source
  • 'Trump' dumped: Toronto condo and hotel tower to ditch Trump name

    Economic CBC News
    The new owners of the Trump International Hotel and Tower Toronto have reached a deal that will see the Trump name removed from the property. JCF Capital says it has reached an agreement with Trump Hotels to buy out the management contracts for the property for an undisclosed amount. Source
  • Trudeau says no security risks in Chinese takeover of Canadian satellite firm

    Economic CTV News
    OTTAWA -- Prime Minister Justin Trudeau sought to assuage public fears and political complaints Tuesday that the Liberal government's decision to allow the Chinese takeover of a Canadian satellite technology company would compromise national security at home and abroad. Source