Asian markets gain on fresh hopes of rate cut by Fed
By Fri, Jul 19, 2019
Asian markets gained in early trading Friday following dovish comments by a top Fed official that raised investors’ hopes of an interest-rate cut.
New York Fed President John Williams said in a speech Thursday that since interest rates are so close to zero, cutting them at the first sign of trouble would be the wisest move. A New York Fed spokesman later clarified that Williams was speaking theoretically, and that it was not an indication of future policy action. Still, traders in fed funds futures raised prospects of a half-point rate cut at the Fed’s upcoming meeting in late July to 50% Thursday, up from 34% the day before.
Japan’s Nikkei NIK, +1.65% rose 1.7% and Hong Kong’s Hang Seng Index HSI, +1.00% gained 1%. The Shanghai Composite SHCOMP, +0.95% advanced 1% and the smaller-cap Shenzhen Composite 399106, +1.13% was up 1.2%. South Korea’s Kospi 180721, +1.10% rose 1.1% while benchmark indexes in Taiwan Y9999, +0.99% , Singapore STI, +0.37% and Indonesia JAKIDX, +0.61% all gained. Australia’s S&P/ASX 200 XJO, +0.75% ticked up 0.7%.
Among individual stocks, semiconductor and electronics manufacturers Screen Holdings 7735, +9.38% and Tokyo Electron 8035, +3.64% surged in Tokyo trading. SoftBank 9984, +2.77% and Toyota 7203, +1.38% also gained. In Hong Kong, Sunny Optical 2382, +4.60% , AIA Group 1299, +2.03% and CNOOC 883, +2.02% advanced. Samsung 005930, +1.63% and LG Electronics 066570, +2.17% rose in South Korea, and Taiwan Semiconductor 2330, +2.56% jumped in Taiwan. In Australia, Beach Energy BPT, +0.94% and mining companies Alacer Gold AQG, +5.88% and Evolution Mining EVN, +4.08% rose.
About the Author
Trade Stocks was specifically created as a resource that traders and investors can rely on for accurate and timely financial news and insights. Our team of industry experts brings you the into you need when you need it. That’s why hundreds of thousands of traders and investors trust us to provide them with the financial education, support, and resources that they can count on to help them move closer to their financial goals.
