Asian mar­kets climb on US rate hopes

The Myanmar Times - - Business -

ASIAN mar­kets climbed yes­ter­day as mixed read­ings on the US econ­omy and com­ments from a top Fed­eral Re­serve of­fi­cial tem­pered ex­pec­ta­tions about the Fed’s longterm plans for rais­ing in­ter­est rates.

The gains came de­spite a neg­a­tive lead from New York and Europe where traders are await­ing key events this week, in­clud­ing Chi­nese growth data, the last pres­i­den­tial de­bate and a Euro­pean Cen­tral Bank pol­icy meet­ing.

“On a longer-term ba­sis, we do think that the Fed­eral Re­serve is likely to be be­hind the curve where hik­ing rates is con­cerned,” Kelvin Tay, re­gional chief in­vest­ment of­fi­cer at UBS Group’s wealth man­age­ment busi­ness in Sin­ga­pore, told Bloomberg Tele­vi­sion.

He added that this meant the dol­lar was likely at its peak.

Re­gional stock mar­kets ral­lied on the prospect of rates stay­ing low for longer. Tokyo ended 0.4 per­cent higher as the dol­lar pared early losses against the yen.

Hong Kong ended 1.6pc higher and Shang­hai closed up 1.4pc.

Syd­ney gained 0.4pc and Seoul put on 0.6pc, while Sin­ga­pore was up 0.1pc. Taipei and Manila also recorded healthy gains.

“We’re likely to see some choppy trad­ing un­til we get some of these risk events out of the way, such as the last US pres­i­den­tial de­bate,” James Woods, an an­a­lyst at Rivkin Se­cu­ri­ties in Syd­ney, told Bloomberg News. ”Mo­men­tum seems to be build­ing up for a De­cem­ber rate hike by the Fed.”

At­ten­tion turns to the re­lease to­day of Chi­nese third-quar­ter eco­nomic growth fig­ures, with an AFP sur­vey pre­dict­ing a slow­down from the pre­vi­ous three months.

The fig­ures will be closely watched af­ter last week’s dis­ap­point­ing China trade re­sults were tem­pered by a bet­ter-than-ex­pected in­fla­tion read­ing.

The growth fig­ures will be fol­lowed by the third US de­bate in a bit­ter pres­i­den­tial elec­tion cam­paign, while the ECB holds a pol­icy meet­ing to­mor­row. –

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