Indexes trade higher as investors react to Fed minutes
Share this @internewscast.com


SINGAPORE — Asia-Pacific markets traded higher on Thursday as investors watch for market reaction to the latest Fed minutes.

Japan’s Nikkei 225 gained 0.83%, and the Topix index rose 0.84%%.

In South Korea, the Kospi advanced 1.04% after closing more than 2% lower on Wednesday, and the Kosdaq climbed around 1%.

The S&P/ASX 200 rose 0.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.17% higher.

Federal Reserve officials recognized that a “more restrictive stance” in policy could be suitable if inflation doesn’t ease, even if it slows the economy, the meeting minutes said.

“Participants recognized that policy firming could slow the pace of economic growth for a time, but they saw the return of inflation to 2 percent as critical to achieving maximum employment on a sustained basis,” the document said.

Stock picks and investing trends from CNBC Pro:

Fed officials also said a hike of 50 or 75 basis points would be likely at the July meeting.

The Federal Open Market Committee is concerned about inflation expectations becoming unanchored, a ANZ research note said on Thursday.

“The Fed is understandably eager to reinforce to the public that it has got this, and hiking 75bp [and signaling many more hikes to come] certainly reinforces the message,” the note said.

U.S. markets gained slightly on Wednesday stateside.

The Dow Jones Industrial Average rose 69.86 points, or 0.23%, to 31,037.68. The S&P 500 advanced 0.36% to 3,845.08, and the Nasdaq Composite traded 0.35% higher to close at 11,361.85.

In other news, Beijing said Covid vaccinations would be required to enter crowded places such as cinemas and gyms in the city starting next week. Mainland China markets fell on Wednesday as Covid concerns came back into focus.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 107.058, continuing to strengthen sharply.

The Japanese yen traded at 135.96 per dollar, and the Australian dollar was at $0.6782.

U.S. West Texas Intermediate futures fell 0.11% to $98.42 per barrel in Asia’s morning trade after two straight days of falls. Brent crude futures slipped 0.37% to $100.32 per barrel.

The U.S. crude benchmark settled 1% lower on Wednesday after an 8% tumble on Tuesday. The international benchmark settled 2% down at $100.69 after falling below the $100 level during Wednesday’s session.

Share this @internewscast.com
You May Also Like

US, Europe, China slowdown could hurt Asian exporters: HSBC

Asian exporters will face significant challenges as demand from major markets like…

India, Australia, Singapore firms jobs are in these sectors: LinkedIn

Recession fears may be looming in Asia-Pacific, but that hasn’t stopped companies…

SoftBank sells entire stake in Uber as Vision Fund losses mount

SoftBank on Monday disclosed that it sold its remaining stake in U.S.…

FAO food price index fell sharply in July but the respite may not last

Farmers harvest a wheat field near Melitopol in Ukraine. Wheat, soybean, sugar,…

Japanese shipping giant to take part in tidal power project

Buildings in Singapore at dusk. Asia is already home to a number…

CEO who developed Tesla of electric scooters shares innovation tips

Horace Luke isn’t a fan of the word “no.” “If I ask…

U.S. inflation CPI report, Wall Street, currencies

SINGAPORE — Futures in Australia pointed to a lower open Thursday after…

Is Japan open to travelers? It’s where Singaporeans want to travel

Some 49% of Singaporeans say they are considering Japan for their next…