Asia markets struggle as US rate rise expectations reduced
ASIAN markets struggled yesterday from the previous day’s hammering with soothing comments on US rates from a top Federal Reserve official unable to reassure tetchy traders.
While Tokyo and Hong Kong saw mild recoveries from September 12’s sharp sell-off there are growing concerns about the future for central bank policy easing after years of cheap cash.
Most Asian stocks rose early yesterday but the rally petered out as the day wore on.
By the close of trade Tokyo was up 0.3 percent and Seoul added 0.4pc but Sydney closed down 0.2 and Wellington lost 0.4. There were also sharp losses in Singapore and Jakarta.
With expectations for a rate rise reduced slightly, the dollar dipped against its peers, easing to 101.80 yen from 101.85 yen in New York.
The Australian dollar jumped 0.4pc, while Malaysia’s ringgit, the Singapore dollar and Indonesian rupiah also each posted healthy gains.
Hong Kong fell 0.3pc, extending the previous day’s 3.4pc plunge despite forecast-beating Chinese data. Shanghai ended marginally higher.
Samsung rallied more than 4pc a day after plunging 7pc following news that it had offloaded its printer business to US giant HP for more than US$ 1 billion dollars as it presses ahead with a restructuring drive.
A pedestrian walks in front of an electric quotation board displaying the Nikkei key index of the Tokyo Stock Exchange (left) in Tokyo yesterday.