Tags: Asia | stocks | Japan | yen

Asian Stocks Rise After Fed Minutes Spur Interest-Rate Optimism

Thursday, 09 Oct 2014 10:07 AM

Asian stocks rose for a third day this week as Federal Reserve concerns over a global economic slowdown spurred bets that U.S. interest rates will remain low for longer than some investors had expected.

Commonwealth Bank of Australia gained 1.6 percent in Sydney as financial firms posted the largest rise among the regional gauge’s 10 industry groups. Aluminum Corporation of China Ltd., also known as Chalco, increased 1.2 percent in Hong Kong after industry bellwether Alcoa Inc.’s profit beat estimates. Tianhe Chemicals Group Ltd. plunged 40 percent in Hong Kong as the company resumed trading after denying fraud claims from a stock- research group associated with the Anonymous hacking collective.

The MSCI Asia Pacific Index gained 0.7 percent to 139.05 as of 4:05 p.m. in Hong Kong, after yesterday closing at the lowest level in almost five months. Futures on the Standard & Poor’s 500 Index added 0.2 percent after the underlying gauge yesterday surged the most this year. Slowing global growth and a stronger dollar pose potential risks to the U.S. outlook, Fed policy makers said at their September meeting, according to the minutes released yesterday.

“Minutes of the September Fed meeting acted like a steroid,” said Matthew Sherwood, head of investment markets research at Perpetual Ltd. in Sydney, which manages about $29 billion. They “seemed to suggest that U.S. rates could remain highly accommodative for longer than initially expected if global demand remained weaker than expected.”

Hong Kong’s Hang Seng Index advanced 1.2 percent. Taiwan’s Taiex Index added 0.1 percent. Australia’s S&P/ASX 200 Index rose 1.1 percent and Singapore’s Straits Times Index gained 1 percent. India’s S&P BSE Sensex Index rose 1.5 percent. New Zealand’s NZX 50 Index gained 0.4 percent. Markets in South Korea are closed for a holiday.

China Shares

The Hang Seng China Enterprises Index of mainland firms listed in Hong Kong climbed 0.9 percent, the most in two weeks, after Premier Li Keqiang said the government will use targeted measures to support China’s economy.

Japan’s Topix index fell 1.1 percent as the yen gained after the Fed minutes. The Bank of Japan has many options for additional easing, Governor Haruhiko Kuroda said in New York.

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Asian stocks rose for a third day this week as Federal Reserve concerns over a global economic slowdown spurred bets that U.S. interest rates will remain low for longer than some investors had expected.
Asia, stocks, Japan, yen
361
2014-07-09
Thursday, 09 Oct 2014 10:07 AM
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