Categories: world

Stock mixed in Asia on Fed rate decision, Japanese data

SINGAPORE (AP) – Asian stocks were blended on Wednesday, as traders agreed on the Federal Reserve's interest rate decision and weaker than expected Japanese trading data. SCORE HOLDING: Japan's Nikkei 225 Index fell 0.4 percent to 21.025.10 while South Korea's Kospi rose 0.6 percent to 2,074.38. Hong Kong's Hang Seng was 0.1 percent higher at 25,835.66. Shanghai Composite Index increased 0.3 percent to 2,567.93. Australia's S & P ASX 200 yielded 0.5 percent to 5,560.30. The shares were higher in Taiwan and Southeast Asia. WALL STREET: Most American indexes broke a two-day losing step as technology and consumer-focused businesses climbed. Energy stocks fell along with crude oil, which reached its lowest price since August 201 7. The broad S & P 500 index increased 0.22 points to 2.546.16. Dow Jones Industrial Average increased by 0.4 percent to 23,675.64 and the Nasdaq composite increased by 0.4 percent at 6,783.91. The Russell 2000 Index for Small Business Shares lost 0.1 percent to 1,377.18. The index is 21 percent of its peak in August, over a level as Wall Street means a "bear market". FED DECISION: Fed is expected to increase its short interest rate after a meeting ends Wednesday. It is expected to raise interest rates – which is used as a benchmark for many consumer and corporate loans – with a modest quarter to an interval of 2.25 percent to 2.5 percent. The central bank has forecasted three more increases in 2019, but investors doubt that it would go as planned.…

SINGAPORE (AP) – Asian stocks were blended on Wednesday, as traders agreed on the Federal Reserve’s interest rate decision and weaker than expected Japanese trading data.

SCORE HOLDING: Japan’s Nikkei 225 Index fell 0.4 percent to 21.025.10 while South Korea’s Kospi rose 0.6 percent to 2,074.38. Hong Kong’s Hang Seng was 0.1 percent higher at 25,835.66. Shanghai Composite Index increased 0.3 percent to 2,567.93. Australia’s S & P ASX 200 yielded 0.5 percent to 5,560.30. The shares were higher in Taiwan and Southeast Asia.

WALL STREET: Most American indexes broke a two-day losing step as technology and consumer-focused businesses climbed. Energy stocks fell along with crude oil, which reached its lowest price since August 201

7. The broad S & P 500 index increased 0.22 points to 2.546.16. Dow Jones Industrial Average increased by 0.4 percent to 23,675.64 and the Nasdaq composite increased by 0.4 percent at 6,783.91. The Russell 2000 Index for Small Business Shares lost 0.1 percent to 1,377.18. The index is 21 percent of its peak in August, over a level as Wall Street means a “bear market”.

FED DECISION: Fed is expected to increase its short interest rate after a meeting ends Wednesday. It is expected to raise interest rates – which is used as a benchmark for many consumer and corporate loans – with a modest quarter to an interval of 2.25 percent to 2.5 percent. The central bank has forecasted three more increases in 2019, but investors doubt that it would go as planned. Higher interest rates can slow economic growth and the US economy is expected to cool off in 2019. China and Europe have also suggested that growth slows.

ANALYSIS TAKE: “Although US economic signals do not blink red … many market participants believe that Fed should give investors a little breathing space after higher interest rates combined with tightening liquidity conditions have sent stock markets down to a downward spiral since October,” said Stephen Innes of OANDA in a comment. “What’s safe from my chair is that Fed will deliver a fourth price increase for the year on cue, but what’s up in the air is what key cardinal point the meeting will change too,” he added.

JAPANE’S TRADE: On Wednesday, Japan reported that the trade balance in November was a deficit of 737.3 billion yen, from 450.1 billion yen in the previous month. This is its fourth deficit over the last five months. The country’s exports declined to a large extent in part due to weaker demand from China. Japan’s exports increased 0.1 per cent from the previous year compared to October by 8.2 per cent ocent. This frustrated the effects of the US-China trade gap on the world’s third largest economy.

ENERGY: Oil prices rebounded a little after worrying about increasing supply and worsening global growth, which could weaken demand. Benchmark US commodity received 12 cents for $ 46.72 per barrel in electronic commerce on the New York Mercantile Exchange. The contract, which has fallen almost 40 percent since October, raised $ 3.60 to $ 46.60 on Tuesday. Brent crude oil used to praise international oils, charging 34 cents to $ 56.60 per barrel. It lost $ 3.35 to $ 56.26 a barrel in London.

CURRENCIES: The dollar weakened to 112.39 yen from 112.52 yen in late trading Tuesday. The euro rose to $ 1,1387 from $ 1,1366.

____

AP Markets Author Marley Jay and Stan Choe contributed to this report.

Copyright © Associated Press. All rights reserved. This material may not be published, transmitted, rewritten or redistributed.

Photos

Related Stories

Share
Published by
Faela