BackAsian shares mixed after US report, Fed comments
Fed chief's pledge to keep interest rates at record lows were offset by profit-taking after the previous day's gains
Premium
Hong Kong: Asian markets were mixed Thursday as a positive report on the US economy and the Federal Reserve chief’s pledge to keep interest rates at record lows were offset by profit-taking after the previous day’s gains.
Wall Street provided another positive lead, with the technology-weighted Nasdaq leading a third-straight rally after last week’s heavy sell-off.
Tokyo, which surged more than 3% on Wednesday, gave up morning gains to end flat, dipping 0.15 points to 14,417.53, while Seoul was also virtually unchanged, nudging 0.16 points down to 1,992.05.
Sydney climbed 33.9 points, or 0.63%, to end at 5,454.2, while Hong Kong gained 0.28%, or 64.23 points, at 22,760.24. Shanghai ended down 0.30%, or 6.24 points, at 2,098.88.
Regional shares enjoyed buying on Wednesday after China released data showing its economy expanded more than expected in the first three months of the year.
In the US the Fed said in its closely watched Beige Book report that the US economy was showing clear signs of picking up again after being caught by a severe winter freeze that jolted spending and jobs growth.
“Economic activity increased in most regions" of the country from mid-February through to early April, it said, with “modest or moderate" expansion in most of the Fed regions surveyed.
The report will be used in the central bank’s next policy meeting on 29-30 April, when policy makers will decide what to do with its multibillion-dollar stimulus programme.
Separately, Fed boss Janet Yellen said she still believed there was a need to keep ultra-low rates well into next year and that she saw no threat from inflation.
Wall Street was cheered by the news. The Dow rose 1.00% and the S&P 500 surged 1.05%. The Nasdaq—which was hammered last week on fears tech stocks may be overvalued—jumped 1.29%, with further help from a strong earnings report from Yahoo.
Yellen’s comments initially saw the dollar rise further against the yen in New York but in Asia on Thursday the Japanese unit recovered.
In the afternoon the dollar bought 102.00 yen, against 102.25 yen in New York Wednesday, while the euro fetched $1.3839 and 141.20 yen compared with $1.3815 and 141.28 yen.
On oil markets New York’s main contract, West Texas Intermediate for May delivery, was up 46 cents at $104.22 and Brent North Sea crude for June added three cents to $109.63.
Gold fetched $1,298.62 an ounce at 1045 GMT, from $1,303.30 late Wednesday.
In other markets:
—Bangkok added 0.50%, or 6.94 points, to 1,408.78.
Telecoms company Advanced Info Service gained 3.49% to 237.00 baht, while Bangkok Bank rose 2.37% to 194.50 baht.
—Jakarta ended up 0.49%, or 24.04 points, at 4,897.05.
Palm oil firm Astra Agro Lestari gained 4.61% to 28,350 rupiah, while cement producer Semen Indonesia slipped 0.78% to 15,825 rupiah.
—Kuala Lumpur gained 0.28%, or 5.17 points, to 1,850.54.
Public Bank rose 1.2% to 19.98 ringgit, while Malayan Banking added 0.8% to 9.83.
—Mumbai rose 1.58%, or 351.61 points, to 22,628.84.
Apollo Tyres Ltd gained 7.49% to ₹ 173, while Crompton Greaves Ltd rose 6.57% to ₹ 188.85.
—Singapore gained 0.02%, or 0.60 points, to 3,253.80.
Oil rig maker Keppel Corp eased 1.79% to Sg$10.99 while Oversea-Chinese Banking Corporation was up 0.10% to Sg$9.65.
—Taipei rose 0.23%, or 20.34 points, to 8,944.16.
Hon Hai added 0.46% to Tw$87.9 while Taiwan Semiconductor Manufacturing Co. fell 0.83% to Tw$120.0.
—Wellington added 0.25%, or 12.80 points, to 5,103.35.
Warehouse Group was up 0.62% at NZ$3.26 and Fletcher Building fell 0.93% to NZ$9.62.
—Manila was closed for a public holiday. AFP
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
