Connect with us

Entertainment

Asian stocks higher after Fed accelerates stimulus pullback

Published

on

Stocks climbed in Asia on Thursday, tracking Wall Street’s gains, after the Federal Reserve said it would accelerate its pullback of economic stimulus.

The Fed said it would likely raise interest rates three times next year to tackle rising inflation and will shrink its monthly bond purchases at twice the pace it previously announced, in line with ending them altogether in March.

Tokyo’s Nikkei 225 index rose 1.8% to 28,979.60 and the Kospi in South Korea picked up 0.2% to 2,996.04. The Shanghai Composite index added 0.3% to 3,657.85. India and Taiwan rose, while Sydney’s S&P/ASX 200 lost 0.4% to 7,296.10.

In Hong Kong, the Hang Seng dropped 0.8% to 23,235.98.

Advertisement

Simmering tensions between Beijing and Washington are casting a shadow, analysts say, after the U.S. House of Representatives passed a resolution to ban imports from China’s Xinjiang region due to concerns about forced labor and other abuses.

Apart from that, the U.S. reportedly is considering sanctions that would prevent companies providing equipment to China’s biggest computer chips maker, SMIC.

The company’s Hong Kong traded shares dropped 3.4% on Thursday. They have declined nearly 22% in the past six months.

“Some concerns on potentially tougher sanctions from the U.S. have kept investors shunning, with China’s SMIC recently under U.S. scrutiny once again, and that may seem to cap gains for China tech sector today,” Yeap Jun Rong of IG said in a commentary.

While the U.S. is hastening its efforts to counter inflation, central banks in Europe are not expected to follow suit, analysts said.

Advertisement
ALSO READ  BBNaija 7: Calm down, her script was perfect - Beauty’s brother fires critics over disqualification

“ECB doves are not set to budge,” Mizuho Bank said in a market report. “For one, while economic recovery endures, it remains fragile, threatened by the ‘omicron’ variant,” it said.

Germany is in the midst of its worst wave of infections so far. In Asia, South Korea has been struggling to beat back rising caseloads.

Major U.S. stock indexes rose after declining before the release of the Fed’s statement at 2 p.m. Eastern time. They gained momentum toward the end of the day. The S&P 500 rose 1.6% to 4,709.85, nearly recouping all of its losses for the week and ending just below the record high it set last Friday.

The Dow Jones Industrial Average rose 1.1% to 35,927.43 and the tech-heavy Nasdaq composite gained 2.2% to 15,565.58. The Russell 2000 index of smaller-company stocks rose 1.6%. Bond yields edged higher.

The U.S. central bank said its monthly bond purchases are no longer needed with unemployment falling and inflation at a near-40-year high. The accelerated timetable puts the Fed on a path to start raising rates as soon as the first half of next year.

Advertisement

The central bank’s policymakers had been expected to announce a faster pullback in their last meeting of the year.

Businesses have been dealing with supply chain problems and higher costs for months. It has been a key concern for investors as big companies pass those costs off to consumers, who have so far been absorbing higher prices on everything from groceries to clothing and other consumer products.

Bond investors had a more measured reaction to the Fed announcement. Bond yields edged higher, with the yield on the 10-year Treasury rising to 1.46% from 1.44% late Tuesday.

ALSO READ  Actress, Anita Joseph makes a scene as her husband, MC Fish, remotely controls her vibrator in public

Retailers and other companies that rely on consumer spending recovered from an early slide. The sector sank after the Commerce Department said s ales rose a modest 0.3% in November, but fell short of economists’ forecasts amid concerns that rising costs could crimp consumer spending.

In other trading Thursday, U.S. crude oil climbed 72 cents to $71.59 per barrel in electronic trading on the New York Mercantile Exchange. It gained 14 cents to $70.87 per barrel on Wednesday.

Advertisement

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Entertainment

Ryan Reynolds reveals Blake Lively did not approve his decision to buy Wrexham FC

Published

on

theheute-

Ryan Reynolds has revealed that his wife Blake Lively did not approve of his decision to buy half of the Welsh football team Wrexham FC.

During an appearance on Jimmy Kimmel Live on Tuesday (9 August), the 45-year-old actor revealed that his wife was not happy when he told her he “might have bought half of a fifth tier national football league in Wales”.

Speaking to host Rob McElhenney, who is the co-owner of Wrexham FC and was standing in for Kimmel, Reynolds started off by sharing the story of how he met his business partner via Instagram DM.

He then shared the story of how he revealed the news to his wife.

Advertisement

“I remember seeing Blake, saying, I have bad news and I have really bad news,” he said. “The bad news is I slipped into someone’s DMs again.

ALSO READ  None of Those Ships Are Sailing, That Script Don Cast: Pere Shades New BBNaija Stars Looking for Relationships
Continue Reading

Celebrities

Davido reacts to Whatsapp new features

Published

on

theheute-

Davido Reacts To WhatsApp New Feature That Will Allow WhatsApp Users To Control People Who Can See When They Are Online.

Nigerian Afrobeat Award-winning artist David Adedeji Adeleke, popularly known as Davido has reacted to Whatsapp’s new features that will allow users to control who can see when they are online.

The singer uses his social media page to react to certain impending privacy modifications that WhatsApp, a popular messaging program, would shortly roll out.

Recall, The ETA’s founder Mark Zuckerberg has revealed that WhatsApp will now have new security features.

He said that Meta will soon roll out a function that would stop Facebook group exit announcements.

Advertisement

ALSO READ  BBNaija 7: Calm down, her script was perfect - Beauty’s brother fires critics over disqualification
Continue Reading

Entertainment

Everybody Dey See Shege: Reactions As Oga Sabinus Jokes About Increase in Price of Flight Ticket

Published

on

theheute-
Popular skit maker and comedian Oga Sabinus dropped a funny statement as he reacted to the increase in the price of flight ticket The comedian joked about those who always gave updates when they travel by plane to Lagos or Abuja as he said it has been a while since he saw such a post Oga Sabinus’s statement has stirred funny reactions on social media as many couldn’t help but agree with him
One of Nigeria’s leading comedians and skit makers, Mr Funny, also known as Oga Sabinus, has reacted to the increase in the price of flight tickets. Oga Sabunus, in a statement via his official Twitter handle, dropped a funny statement on how it has been a long time since he heard from those who make their flight trip known on social media.

ALSO READ  Actress, Anita Joseph makes a scene as her husband, MC Fish, remotely controls her vibrator in public
Continue Reading

Trending

Copyright © 2022 TheHeute.