Most Asian Markets Rebound From Losses After Wall St Rally
Umer Jamshaid Published February 01, 2023 | 05:56 PM
Most Asian markets bounced from two days of losses on Wednesday as traders tracked a Wall Street surge fuelled by data pointing to slowing US inflation and hopes the Federal Reserve's rate hike drive is coming to an end
Hong Kong, (UrduPoint / Pakistan Point News - 1st Feb, 2023 ):Most Asian markets bounced from two days of losses on Wednesday as traders tracked a Wall Street surge fuelled by data pointing to slowing US inflation and hopes the Federal Reserve's rate hike drive is coming to an end.
The gains will provide some relief to investors after January's rally appeared to have hit the buffers this week on lingering concerns about the economic outlook.
Focus is firmly on the US central bank's policy decision later in the day, which will be followed for an idea about its plans for interest rates over the next few months in light of the less painful price environment.
Of particular interest will be bank boss Jerome Powell's post-meeting comments as he and most other officials have consistently pushed back against market talk of a change of course from the policy board.
Expectations the Fed will hike borrowing costs just 25 basis points on Wednesday were ramped up after a key gauge of wage increases came in below forecasts.
"The employment cost index (ECI) is closely watched by the Fed as it compositionally adjusts wages growth, unlike other more timely measures," said National Australia Bank's Tapas Strickland.
"More important for the Fed is one of the subcomponents, the wages and salaries for private sector workers excluding incentive paid occupations, which rose 0.9 percent on-quarter from 1.2 previously." He added that the reading was "a notable deceleration and in quarter annualised terms would be equivalent to 3.6-3.7 percent. That is close to being consistent with at-target inflation if repeated next quarter." The ECI reading came as another report showed a slowdown in the US housing market as well as a dip in consumer confidence, suggesting the Fed's tightening campaign is beginning to kick in.
While they indicate the world's top economy is slowing, hope is building that the data will allow the central bank to wind down its rate hikes.
"We're getting closer to the terminal rate," Sassan Ghahramani, of SGH Macro Advisors, told Bloomberg Television. "Data that has come out does not justify 50 basis point hikes. If anything, I'd say it's virtually a 100 percent certainty they do 25." And OANDA's Edward Moya added: "Wall Street is slowly growing confident that this week's Fed rate hike might end up being the last one in this tightening cycle." All three main indexes on Wall Street ended more than one percent higher, helped by strong earnings from big-ticket firms including ExxonMobil and General Motors.
And most of Asia picked up the baton, with Tokyo, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, Manila and Jakarta all in positive territory.
However, Hong Kong dipped for a third straight day, having piled on more than 10 percent in the past month.
- Key figures around 0230 GMT - Tokyo - Nikkei 225: UP 0.2 percent at 27,376.22 (break) Hong Kong - Hang Seng Index: DOWN 0.4 percent at 21,755.72 Shanghai - Composite: UP 0.1 percent at 3,258.17 Euro/dollar: DOWN at $1.0856 from $1.0870 on Tuesday Pound/dollar: DOWN at $1.2309 from $1.2322 Euro/pound: UP at 88.20 pence from 88.18 pence Dollar/yen: DOWN at 130.02 yen from 130.10 yen West Texas Intermediate: UP 0.3 percent at $79.11 per barrel Brent North Sea crude: UP 0.2 percent at $85.59 per barrelNew York - Dow: UP 1.1 percent at 34,086.04 (close)London - FTSE 100: DOWN 0.2 percent at 7,771.70 (close)
Related Topics
Recent Stories
Tennis: ATP Barcelona Open results - 1st update
Swiatek's perfect 10 in Stuttgart as Vondrousova stuns Sabalenka
Arandu's roads closed due to flooding
Oil tanker catches fire in Islamabad’s Blue Area
Pakistan committed to ensure safety of foreign nationals: FO
Tennis: WTA Stuttgart results - 1st update
Four passengers injured as train hit an empty vehicle
Over- speeding bus crushed to death two bike riders
Turkey's Freedom Flotilla ready to set sail for Gaza
French teen dies from heart failure after knife attack near school
Iranians appear unfazed by Isfahan blasts
UAF celebrates Int'l Chinese Language Day
More Stories From Business
-
Pakistan aims to agree outline of new IMF loan in May - Finance Minister
10 hours ago -
FTO commends FBR's role for prompt resolution of tax payers’ issues
10 hours ago -
BISP embraces E-procurement: launches inaugural tender
12 hours ago -
Business community indebted to Ahsan Zafar for his unprecedented services: Yousuf Rajput
12 hours ago -
China auto sector steps up Europe push with Spain plant
12 hours ago -
Condolence reference held in memory of FBR's officials
13 hours ago
-
Health activists ring alarm bells over 10-stick cigarette pack
13 hours ago -
Karachi receives maiden direct flight of Azerbaijan Airlines from Baku
14 hours ago -
PSX turns bullish, gains 619 points
14 hours ago -
Rupee bounces back; gains 13 paisa against dollar
14 hours ago -
Partners join hands for alternate use of marble, granite slury
14 hours ago -
Tokyo's Nikkei index tumbles 3% in morning trade
16 hours ago