Asian stocks rise as oil rallies

HONG KONG - Most Asian stocks jumped Thursday as oil prices bounced back and weak U.S. economic data fueled investor hopes that the Fed would slow the pace of rate hikes this year.

See Full Article

Japanese shares fell as the yen rose against the dollar.

KEEPING SCORE: Japan's Nikkei 225 lost 0.8 per cent to 17,059.31 after the yen strengthened sharply against the dollar, hurting share prices of the country's export manufacturers. South Korea's Kospi added 1.4 per cent to 1,915.94 and Hong Kong's Hang Seng advanced 1.3 per cent to 19,245.56. The Shanghai Composite Index in mainland China climbed 0.9 per cent to 2,764.59. Australia's S&P/ASX 200 rose 2.1 per cent to 4,980.40. Markets in Southeast Asia rose.

RATE RETHINK: Investors are dialing back expectations that the Fed will continue gradually raising interest rates after recent data showed the U.S. economy had a weak start to the year. On Wednesday, the private ISM survey found U.S. services companies grew in January at the slowest rate in nearly two years. Meanwhile, the dollar sank after New York Fed President William Dudley told financial news agency MNI that the U.S. central bank would have to take into account tight global financial conditions when considering further rate hikes.

QUOTABLE: "A lot of the pressure in Asia has been taken off by the fact that yen strengthened so much overnight," which makes Chinese exports more competitive in Asia and reduces the need for Beijing to let China's yuan fall further, said Andrew Sullivan, sales trader at Haitong Securities. "People are expecting the Fed to be on the back foot now" when it comes to rate hikes, he said. "There's a lot out there that suggest the Fed that isn't going to be as bullish as it might have been earlier."

WALL STREET: U.S. stocks staged a late turnaround to finish higher thanks to surging oil prices and the weakening U.S. dollar. The Dow Jones industrial average rose 1.1 per cent to close at 16,336.66. The Standard & Poor's 500 rose 0.5 per cent to 1,912.53 but the Nasdaq composite fell 0.3 per cent to 4,504.24.

ENERGY: Oil futures extended gains on the weaker greenback, which makes oil cheaper for international investors buying with other currencies. Benchmark U.S. crude added 29 cents, or 0.9 per cent, to $32.57 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $2.40, or 8 per cent, to close at $32.28 a barrel on Wednesday in New York. Brent crude, a benchmark for international oil prices, rose 39 cents to $35.42.

CURRENCIES: The dollar was steady after losing about 1.7 per cent overnight, edging up to 117.98 yen from 117.90 yen. The euro eased to $1.1083 from a three-month high of 1.1118 in the previous day's trading.



Advertisements

Latest Economic News

  • Employment scam tops BBB's list of top scams for 2016

    Economic CBC News
    Canadians lost a reported $90 million to scams last year, according the Better Business Bureau's list of the top ten scams of 2016 The list was compiled with information gathered from the Bureau's scam tracker website, the Canadian Anti-Fraud Centre and concerns from community partners. Source
  • Air Miles sends belated apology to collectors after learning 'humbling lessons' in 2016

    Economic CBC News
    Air Miles wants to make amends with its members for a rough 2016, so it's emailing them an apology of sorts starting Wednesday morning. The year was "challenging" and "we learned very difficult, public and humbling lessons," Blair Cameron, head of Air Miles, says in the letter. Source
  • Hershey expects to cut 15 per cent of global workforce

    Economic CTV News
    HERSHEY, Pa. -- Hershey expects to cut its global workforce by about 15 per cent, with the reductions coming mostly from hourly employees outside the United States. The Pennsylvania chocolate maker also trimmed its forecast for long-term sales growth to between 2 per cent and 4 per cent, down from the previous 3 per cent to 5 per cent. Source
  • Women's retailer BCBG Max Azria seeks creditor protection, will close stores in Canada

    Economic CBC News
    Women's upscale fashion retail chain BCBG Max Azria is seeking protection from creditors in the North America, and plans to restructure, including closing all its standalone stores in Canada. The chain, founded in Los Angeles in 1989, has grown to 550 stores worldwide. Source
  • Uber CEO caught on video arguing about fares

    Economic CTV News
    LONDON -- Uber's CEO says he needs leadership help after a video has emerged of him arguing with a driver about fares. In a video obtained by Bloomberg News, Travis Kalanick is seen discussing Uber's business model with the driver. Source
  • Uber CEO, after outburst caught on video: 'I need leadership help'

    Economic CTV News
    Uber's CEO says he needs leadership help after a video has emerged of him arguing heatedly with a driver about fares. In the latest embarrassment to beset the ride-hailing company, CEO Travis Kalanick is seen discussing Uber's business model with the driver. Source
  • Ont. man denied $10,000 jackpot over casino 'self-exclusion' rule

    Economic CTV News
    An Ontario man was shocked when he recently won more than $10,000 at a casino, only to be told he wasn’t eligible to collect his winnings. John Marando, 82, recently thought he had met a run of great luck, when he won a jackpot while playing a slot machine at the Mohawk racetrack outside of Milton, Ont. Source
  • New York City's Waldorf Astoria closing for major makeover

    Economic CTV News
    NEW YORK -- The word "grand" matched few hotels in the world better than New York City's Waldorf Astoria, but this bastion of gilded splendor is now closing for two to three years for a transformative makeover. Source
  • Cape Breton's underground coal mining resumes after 15 years

    Economic CTV News
    DONKIN, N.S. - Underground coal mining has restarted in Cape Breton, more than 15 years after the fossil fuel was last cut from a rock face beneath the island. A news release from a minority stakeholder in the operation says 64 employees and contractors have been working at the Donkin project site since Monday night. Source
  • With no rate change expected, analysts to scrutinize BoC's words

    Economic CTV News
    OTTAWA -- With the Bank of Canada widely expected to leave its benchmark interest rate untouched Wednesday, analysts will focus on the tone of an announcement that arrives amid significant uncertainty about U.S. economic proposals. Source