pcloudyn.png
Wednesday December 11th, 2019 6:41AM

Asian shares mixed after US Fed lifts interest rate

By The Associated Press
Related Articles
  Contact Editor

SINGAPORE (AP) — Asian markets were mixed on Thursday after the U.S. Federal Reserve lifted its key interest rate as expected for the third time this year.

KEEPING SCORE: Japan's Nikkei 225 dropped 0.8 percent to 23,827.25. South Korea's Kospi, which reopened after a national holiday, added 0.4 percent to 2,348.87. Hong Kong's Hang Seng index slipped 0.4 percent to 27,702.82. The Shanghai Composite Index lost 0.5 percent to 2,793.30. Australia's S&P ASX 200 was less than 0.1 percent lower at 6,189.70. Shares fell in the Philippines but rose in Taiwan, Singapore and Indonesia.

WALL STREET: Major U.S. indexes fell after the Fed pushed interest rates higher as expected. Stocks initially climbed after the announcement, but the gains faded as a drop in Treasury yields hurt financial stocks. The S&P 500 index dropped 0.3 percent to 2,905.97 after being as much as 0.5 percent higher earlier in the day. The Dow Jones Industrial Average fell 0.4 percent to 26,385.28. The Nasdaq composite was 0.2 percent lower at 7,990.37.

U.S. RAISES INTEREST RATE: On Wednesday, the Fed signaled its confidence in the U.S. economy by raising a key interest rate for a third time this year. It lifted its short-term rate — a benchmark for many consumer and business loans — by a modest quarter-point to a range of 2 percent to 2.25 percent. Hong Kong has adjusted its base interest rate to match the move, and other Asian economies which have their currencies pegged to the dollar may soon follow suit. Chairman Jerome Powell said this did not amount to a policy change. The Fed also forecasted another rate hike by end 2018 and predicted that it will continue to tighten credit into 2020 to manage growth and inflation.

ANALYST'S TAKE: "The Fed raised rates as expected but stopped referring to its policy as 'accommodative', which could signal that it is nearing the end of its tightening cycle," said Song Seng Wun, an economist at CIMB Private Banking. "While there are risks from trade fights, there is a sense of reassurance that growth remains resilient for now," he added.

JAPAN-US TRADE: Prime Minister Shinzo Abe said Wednesday that he had agreed to go ahead with bilateral trade talks with the U.S. despite having rejected such negotiations earlier. The move won Japan relief from the immediate threat of punitive tariffs on its auto exports to the U.S., which would have significantly escalated trade tensions. The two sides said they also would seek to resolve differences over U.S. tariffs on imported steel and aluminum.

ENERGY: Benchmark U.S. crude rose 81 cents to $72.38 per barrel in electronic trading on the New York Mercantile Exchange. The contract dropped 1 percent on Wednesday to close at $71.57. Brent crude, used to price international oils, added 73 cents to $81.52 per barrel. It settled at $80.79 per barrel in London.

CURRENCIES: The dollar eased to 112.62 yen from 112.73 yen. The euro fell to $1.1703 from $1.1739.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Asian shares mixed after US Fed lifts interest rate
Asian shares mixed after US Fed lifts interest rate, Japan OK's trade talks with US
11:46PM ( 5 minutes ago )
DeGrom makes pitch for Cy Young, Mets blank Braves 3-0
Jacob deGrom was dominant in what likely was his final pitch for the NL Cy Young Award, throwing eight stellar innings and leaving with a major league-best 1.70 ERA as the New York Mets blanked the Atlanta Braves 3-0.
11:29PM ( 22 minutes ago )
The Latest: Congo to boycott UN meetings about the country
Congo says it has decided to boycott two planned U.N. events focusing on the central African nation because it was not consulted on the agenda or expected outcome
11:22PM ( 29 minutes ago )
Associated Press (AP)
Via arms and trade, Russia plots long-term Syrian future
Russia is selling weapons and reviving trade with Syria as it looks toward a post-war future
10:35PM ( 1 hour ago )
California tightens rules for concealed weapons, bump stocks
Gov. Jerry Brown has signed a new law requiring that Californians undergo at least eight hours of training, including live-fire exercises, before carrying concealed weapons.
9:58PM ( 1 hour ago )
The Latest: Russia, Turkey, Iran discuss Syria's future
The foreign ministers of Russia, Turkey and Iran have discussed Syria's political future _ as Western countries hold parallel meetings on the same issue
9:35PM ( 2 hours ago )
AP Business
Trump to world leaders: China out to meddle in 2018 election
President Donald Trump tells world leaders that China is trying to interfere in the upcoming U.S. congressional elections because it opposes his tough trade policies
6:38PM ( 5 hours ago )
The Latest: Trump claims credit for saving Idlib from attack
President Donald Trump is claiming credit for saving the rebel-held Syrian stronghold of Idlib from a Russian-backed offensive
6:28PM ( 5 hours ago )
The Latest: New Zimbabwe leader leaves out the venom at UN
It was a very different Zimbabwe speech at this year's U.N. gathering of world leaders after the fall last year of Robert Mugabe _ he was known for tirades against Western powers, but new President Emmerson Mnangagwa taking a conciliatory tone
6:26PM ( 5 hours ago )
AP Business - Economy
US stocks waver following Federal Reserve rate increase
U.S. stock indexes are wavering between gains and losses after the Federal Reserve raised interest rates for the third time this year in the face of the strengthening economy.
3:40PM ( 8 hours ago )
The Latest: Fed chair says housing still affordable
The Latest: Fed Chairman Powell says housing still affordable despite rising mortgage rates
3:37PM ( 8 hours ago )
The Latest: Powell says tariffs not hurting economy yet
The Latest: Fed Chairman Powell says tariffs not hurting economy yet
3:02PM ( 8 hours ago )
AP Business - Financial Markets
The Latest: Powell says no change in Fed policy
The Latest: Fed removes statement on boosting employment, but Powell says policy is unchanged
2:50PM ( 9 hours ago )
The Latest: US Fed sticks with 3 hikes next year, 1 in 2020
The Latest: US Federal Reserve sticks with 1 more hike this year, next year and 1 in 2020
2:10PM ( 9 hours ago )
The Latest: Fed raises short term rate for 3rd time in 2018
The Latest: Fed boosts short term rate to range of 2 percent to 2.25 percent
2:02PM ( 9 hours ago )
AP Business - Industries
Report: Long trade war would hurt US more than China
Economists at the European Central Bank simulated a wide-ranging global trade war and found it would cost the United States significant amounts of growth, while China might not be hit so badly
4:03AM ( 19 hours ago )
Report: Global trade war would hurt US the most
Economists at the European Central Bank simulated a wide-ranging global trade war and found it would cost the United States significant amounts of growth, while China might not be hit so badly
4:01AM ( 19 hours ago )
Fed seems poised to raise rates for a 3rd time this year
Fed's 3rd rate hike this year is expected despite rising risks from Trump's trade fights
3:28AM ( 20 hours ago )
AP Business - Financial Services
DeGrom makes pitch for Cy Young, Mets blank Braves 3-0
Jacob deGrom was dominant in what likely was his final pitch for the NL Cy Young Award, throwing eight stellar innings and leaving with a major league-best 1.70 ERA as the New York Mets blanked the Atlanta Braves 3-0.
11:29PM ( 22 minutes ago )
The Latest: Congo to boycott UN meetings about the country
Congo says it has decided to boycott two planned U.N. events focusing on the central African nation because it was not consulted on the agenda or expected outcome
11:22PM ( 29 minutes ago )
Man with long immigration record is charged with killings
A man from El Salvador with a long criminal and immigration history has been charged in the beating deaths of three homeless men in California, after being questioned by police in Houston about his aunt's disappearance
11:20PM ( 31 minutes ago )
Brewers clinch playoff spot, sweep Cards 2-1; Cubs also in
The Milwaukee Brewers clinched their first playoff spot since 2011 by ensuring at least a spot in the NL wild-card game, helped when a rookie St. Louis pinch-runner Adolis Garcia suddenly fell on his way to the plate in a 2-1 win over the Cardinals
11:11PM ( 40 minutes ago )
Latest: Foul play against suspect's missing uncle, aunt eyed
A Houston police spokesman says foul play is now suspected in the disappearance of the aunt and uncle of a suspect in several California homicides
11:04PM ( 47 minutes ago )