Asian stock mar­kets sink af­ter Wall Street rally fades

The Freeman - - BUSINESS -

BEI­JING — Asian stock mar­kets fell Fri­day af­ter a post-elec­tion Wall Street rally faded and the U.S. Fed­eral Re­serve sug­gested it will keep rais­ing in­ter­est rates.

KEEP­ING SCORE: The Shang­hai Com­pos­ite In­dex lost 1.3 per­cent to 2,614.37 and Tokyo’s Nikkei 225 re­treated 0.8 per­cent to 22,310.16. Hong Kong’s Hang Seng fell 2.4 per­cent to 25,753.23 and Syd­ney’s S&P-ASX 200 de­clined 0.4 per­cent to 5,903.20. Seoul’s Kospi gave up 0.2 per­cent to 2,087.32 and In­dia’s Sensex was off 34 points at 35,205.69. New Zealand and Malaysia ad­vanced while Tai­wan and other South­east Asian mar­kets re­treated.

WALL STREET: Com­ing off the pre­vi­ous day’s surge, stocks slipped as a ninth straight de­cline in oil prices hurt en­ergy com­pa­nies. Banks gained af­ter the Fed­eral Re­serve left in­ter­est rates un­changed. The Stan­dard & Poor’s 500 shed 0.3 per­cent to 2,806.83 af­ter it jumped 2.1 per­cent Wed­nes­day. The Dow Jones In­dus­trial Av­er­age inched up 10.92 points to 26,191.22. The Nas­daq com­pos­ite dipped 0.5 per­cent to 7,530.88.

FED WATCH: The U.S. cen­tral bank left in­ter­est rates un­changed but sug­gested it plans to keep rais­ing them in re­sponse to the strong econ­omy. The Fed has raised its key rate eight times since late 2015 and is ex­pected to do so again in De­cem­ber, with sev­eral more in­creases to fol­low.

AN­A­LYST’S COM­MENT: “The sense that the Fed is well on track to con­tinue tight­en­ing pol­icy de-railed the post mid-term re­lief rally in the mar­kets,” said Vishnu Varathan of Mizuho Bank in a re­port. The Fed cited a stronger job mar­ket and omit­ted men­tion of tighter fi­nan­cial con­di­tions, “low­er­ing the bar” for a De­cem­ber rate hike, said Varathan.

EN­ERGY: Bench­mark U.S. crude lost 14 cents per bar­rel to $60.53 in elec­tronic trad­ing on the New York Mer­can­tile Ex­change. The con­tract plunged $1 the pre­vi­ous ses­sion to $60.67. Brent crude, used to price in­ter­na­tional oils, gained 3 cents to $70.68 in Lon­don. It dropped $1.42 on Thurs­day.

CUR­RENCY: The dol­lar de­clined to 113.86 yen from Thurs­day’s 114.08 yen. The euro weak­ened to $1.1357 from $1.1365.

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