Asian mar­kets rise again

The Myanmar Times - - Business -

ASIAN mar­kets rose yes­ter­day with Ja­panese stocks boosted by a weaker yen, while the pound hit a new three-decade low against the dol­lar as talk of a fresh US rate hike added to wor­ries about Bri­tain’s exit from the Euro­pean Union.

News show­ing the US man­u­fac­tur­ing sec­tor re­bounded in Septem­ber helped turn at­ten­tion back to US mon­e­tary pol­icy, days ahead of the re­lease of a closely watched jobs re­port.

The spec­u­la­tion added fur­ther pres­sure on ster­ling, which has plunged this week af­ter Bri­tish Prime Min­is­ter Theresa May set a timetable for leav­ing the EU by 2019.

US fac­tory ac­tiv­ity ex­panded in Septem­ber, the In­sti­tute for Sup­ply Man­age­ment said, af­ter show­ing con­trac­tion the month be­fore.

Traders took the re­port as a sign the world’s top econ­omy is get­ting back on track and able to with­stand an in­crease in bor­row­ing costs.

The Fed had con­sid­ered a rate hike but held off, say­ing it wanted to see more ev­i­dence of strength.

“The data is sug­gest­ing the Fed will likely raise rates in De­cem­ber,” Michael McCarthy, chief mar­ket strate­gist at CMC Mar­kets in Sydney, told Bloomberg News.

“We’ll prob­a­bly have a cou­ple of months of stronger data gaug­ing from the strength of new or­ders. The yen weak­ness is sup­port­ive of Ja­panese ex­ports.”

Ja­panese ex­porters were lifted by the weaker yen, which makes their goods cheaper and helps their bot­tom line. The Nikkei closed 0.8 per­cent higher, just short of the pre­vi­ous day’s rise.

Stocks were also up else­where in Asia, de­spite some early wari­ness af­ter a surge the day be­fore.

Hong Kong climbed 0.5pc while Sin­ga­pore rose 0.3pc, and Seoul added 0.6pc as in­vestors re­turned from a long week­end break. –

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