sunny.png
Sunday August 18th, 2019 12:00PM

Asian markets rise on hopes for interest rate cuts

By The Associated Press
Related Articles
  Contact Editor

SINGAPORE (AP) — Asian shares were mostly higher Thursday on news that the Reserve Bank of Australia may cut interest rates, driving hopes that other central banks could come to the same conclusion. Markets in China, Hong Kong and Taiwan were closed for Lunar New Year.

Philip Lowe, the governor of Australia's central bank, said in a speech on Wednesday that lower interest rates "might be appropriate at some point" if the country's unemployment rate keeps rising and inflation targets aren't achieved.

The central bank kept its official interest rate at a record-low 1.5 percent earlier this week. But it downgraded its 2019 growth forecast for Australia to around 3 percent from 3.5 percent.

"In adopting a more evenly balanced stance, the RBA has opened the door for a rate cut if increased global risks and the weaker housing market forces more downgrades in its sanguine growth or inflation outlook," DBS Group Research strategists Philip Wee and Duncan Tan said in a commentary.

Australia's S&P ASX 200 rebounded 1.1 percent to 6,094.70.

When borrowing is made less expensive, the increase in spending by businesses and consumers could give the economy boost. Central banks in the Philippines, India and the U.K will meet later today but they are expected to leave rates unchanged.

Japan's Nikkei 225 dropped 0.7 percent to 20,736.89 on concerns over U.S.-China relations. U.S. Treasury Secretary Stephen Mnuchin and trade representative Robert Lighthizer will lead a delegation to Beijing next week for the next round of trade talks, but the issues at hand are complex.

These include contentious issues like Beijing's technology policy and trade practices, where progress has been limited so far.

Mnuchin also said that there were no plans for President Donald Trump to meet Chinese leader Xi Jinping. "If there are remaining issues that we can't get closed, I think President Trump expects that he's going to sit down with President Xi and address those issues," he said.

In other trading, New Zealand's NZX index advanced 0.8 percent to 9,914.64 and South Korea's Kospi rose 0.3 percent to 2,209.76. Stocks rose in Singapore and the Philippines but fell in Indonesia.

WALL STREET: Video game companies Electronic Arts, whose titles include "The Sims", and Take-Two Interactive, maker of the "Grand Theft Auto" series, reported weaker-than-expected earnings on Wednesday. They also posted disappointing forecasts because of tougher competition. Communication sector stocks tumbled, snapping the market's five-day winning streak, but strong earnings by other companies cushioned the blow. The broad S&P index lost 0.2 percent to 2,731.61. The Dow Jones Industrial Average fell 0.1 percent to 25,390.30 and the Nasdaq composite dropped 0.4 percent to 7,375.28. The Russell 2000 index of smaller company stocks eased 0.1 percent to 1,518.02.

ENERGY: U.S. crude lost 10 cents to $53.91 per barrel in electronic trading on the New York Mercantile Exchange. It gained 35 cents to settle at $54.01 per barrel in New York. Brent crude, used to price international oils, gave up 18 cents to $62.51 per barrel. It added 71 cents to close at $62.69 per barrel in London.

CURRENCIES: The dollar eased to 109.87 yen from 109.99 yen late Wednesday. The euro weakened to $1.1359 from $1.1363.

  • 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 markets rise on hopes for interest rate cuts
Asian markets rise on hopes for interest rate cuts after RBA speech
10:53PM ( 22 minutes ago )
The Latest: AP sources: Barnes going to Kings from Dallas
The Latest: AP sources: Harrison Barnes heading to Sacramento from Dallas
10:51PM ( 23 minutes ago )
No. 14 Villanova tops Creighton in OT for 10-0 Big East mark
Freshman forward Saddiq Bey scored a career-high 17 points, senior Phil Booth hit key baskets down the stretch and No. 14 Villanova remained perfect in Big East play by beating Creighton 66-59 in overtime
10:50PM ( 24 minutes ago )
Associated Press (AP)
Pacific Gas & Electric vows to improve wildfire prevention
Up to five million Northern California customers could temporarily lose power this year in the name of wildfire prevention if regulators approve Pacific Gas & Electric's $2.3 billion safety proposal submitted Wednesday
9:43PM ( 1 hour ago )
Trump introduces World Bank critic David Malpass to lead it
Trump introduces Treasury official Malpass as his choice to lead the World Bank
9:29PM ( 1 hour ago )
San Francisco gas explosion shoots fire that burns buildings
An explosion on a gas line in San Francisco prompted evacuations of nearby buildings
9:17PM ( 1 hour ago )
AP Business
Ivanka Trump unveils White House global women initiative
Ivanka Trump is unveiling an effort aimed at women's global economic empowerment that seeks to support 50 million women in the developing world by 2025
7:01PM ( 4 hours ago )
No plans yet for US, China presidents to meet on trade
Treasury Secretary Steven Mnuchin says there are no plans yet for President Donald Trump and Chinese President Xi Jinping to meet to finalize a trade deal
3:41PM ( 7 hours ago )
United courts the well-heeled with more premium seats
United Airlines plans to retrofit many planes and add premium seats in a bid to win over high-fare passengers
2:58PM ( 8 hours ago )
AP Business - Economy
Video game companies lead modest slide in US stocks
A mixed bag of corporate earnings nudged U.S. stocks slightly lower Wednesday, snapping the market's five-day winning streak
4:59PM ( 6 hours ago )
Stocks edge mostly lower on mixed corporate earnings
A mixed bag of corporate earnings is pulling stocks mostly lower in afternoon trading
1:49PM ( 9 hours ago )
Stocks fall on mixed corporate earnings
Stocks are falling in midday trading on Wall Street as U.S. companies turn in a mixed bag of financial results.
12:09PM ( 11 hours ago )
AP Business - Financial Markets
The Latest: San Francisco officials say big fire is out
Officials say a fire that ripped into a San Francisco restaurant building after a gas explosion is extinguished
7:04PM ( 4 hours ago )
Gas line explosion in San Francisco ignites buildings
An explosion on a gas line in San Francisco has prompted evacuations of nearby buildings
6:52PM ( 4 hours ago )
Infrastructure bill faces many potholes in months ahead
Lawmakers from both parties are expressing hope about reaching an agreement, but a huge obstacle remains: How will lawmakers pay for it?
6:41PM ( 4 hours ago )
AP Business - Industries
UN experts: North Korea nukes intact, dispersing missiles
U.N. experts say North Korea's nuclear and ballistic missile programs "remain intact" and it is dispersing its missile assembly and testing to prevent "decapitation" strikes
6:31PM ( 1 day ago )
Among 2020 Democrats, a debate over 'Medicare-for-all'
Democratic hopefuls trying to define 'Medicare for all' and what it means for health care
5:42PM ( 2 days ago )
'Bond King' Bill Gross to retire from Janus
Janus Henderson Investors says famed 'Bond King' William H. Gross is retiring from the firm to manage his personal assets and charitable foundation
2:39PM ( 2 days ago )
AP Business - Financial Services
The Latest: AP sources: Barnes going to Kings from Dallas
The Latest: AP sources: Harrison Barnes heading to Sacramento from Dallas
10:51PM ( 23 minutes ago )
No. 14 Villanova tops Creighton in OT for 10-0 Big East mark
Freshman forward Saddiq Bey scored a career-high 17 points, senior Phil Booth hit key baskets down the stretch and No. 14 Villanova remained perfect in Big East play by beating Creighton 66-59 in overtime
10:50PM ( 24 minutes ago )
The Latest: Trump says nearly all IS territory reclaimed
President Donald Trump says he expects to be able to announce next week that the U.S. and coalition partners have reclaimed 100 percent of the Islamic State caliphate
10:33PM ( 42 minutes ago )
Army aims for more combat-ready troops with new fitness test
The Army is developing a new, more grueling and complex fitness exam that adds dead lifts, power throws and other exercises designed to make soldiers more fit and ready for combat
10:30PM ( 44 minutes ago )
Last-minute decisions in SEC add drama to signing day
Last-minute decisions add drama to signing day in the SEC; Alabama again tops team standings
10:01PM ( 1 hour ago )