Most Asian mar­kets up ahead of meet­ings

The Myanmar Times - - International Business -

ASIAN mar­kets mostly rose yes­ter­day as traders gear up for huge cen­tral bank meet­ings in the US and Ja­pan, hop­ing au­thor­i­ties press on with their loose mone­tary poli­cies.

Con­cern that years of cheap cash could be com­ing to an end has roiled mar­kets this month with con­flict­ing com­ments from top Fed­eral re­serve of­fi­cials over the need for an in­ter­est rate hike fu­elling un­cer­tainty.

And a lack of any con­crete prom­ises from Tokyo about the Bank of Ja­pan’s plans has also been cause for worry, with years of bond-buy­ing and govern­ment spend­ing hav­ing lit­tle im­pact on the coun­try’s tor­pid econ­omy.

“There are grow­ing con­cerns about the lim­its of mone­tary pol­icy’s im­pact on growth,” Bernard Aw, a mar­kets strate­gist in Sin­ga­pore at IG Ltd, said in an email to clients.

“Un­like the Fed, where in­vestors have a bi­nary view – hike or no hike – of US mone­tary pol­icy, the BoJ presents a com­pli­cated sit­u­a­tion. Gov­er­nor [Haruhiko] Kuroda has re­peat­edly stressed they still have many pol­icy tools at their dis­posal.”

Hong Kong rose 0.9 per­cent as in­vestors re­turned from a three-day week­end to play catch-up with the Septem­ber 16 re­gional rally.

Shang­hai, which was also closed, was up 0.6pc while Seoul gained 0.6pc and Sin­ga­pore added 0.4pc. Syd­ney, how­ever, was 0.3pc lower.

Tokyo was closed for a pub­lic hol­i­day yes­ter­day.

The dol­lar held on to most of last week’s gains against the pound and euro af­ter the re­lease of data show­ing an uptick in in­fla­tion dur­ing Au­gust.

On oil mar­kets, prices climbed as fight­ing erupted in Libya, with forces loyal to the UN-backed unity govern­ment launch­ing an of­fen­sive on Septem­ber 18 to re­take key ports seized last week by fighters from a ri­val ad­min­is­tra­tion.

The com­mod­ity had fallen to a one-month low be­fore the un­rest in the coun­try, which has Africa’s largest re­serves. West Texas In­ter­me­di­ate was up 76 cents at US$43.79 and Brent added 74 to $46.51.

How­ever, gains will be lim­ited ow­ing to a global sup­ply glut and over­pro­duc­tion. Traders are keenly await­ing a meet­ing be­tween OPEC and Rus­sia next week aimed at ad­dress­ing the is­sue, al­though there are wor­ries about the chances of a deal be­ing reached. –

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