Asian shares waver, dollar soft after Fed keeps rates steady

HONG KONG — Asian markets wavered and the dollar lost some steam Thursday after the Fed kept its key lending rate on hold as expected at its latest policy meeting.

KEEPING SCORE: Japan's benchmark Nikkei 225 index slipped 0.7 percent to 19,008.00 while South Korea's added 0.1 percent to 2,080.61. Hong Kong's Hang Seng lost 0.6 percent to 23,188.86 and Australia's S&P/ASX 200 edged 0.1 percent lower to 5,647.60. Markets in mainland China were closed for the final day of a weeklong holiday.

CENTRAL BANKING: The Federal Reserve left a key interest rate on hold after its latest policy meeting, as investors had expected. Policymakers signaled that they still expect to gradually raise rates but gave no clear timeline. Markets are keeping an eye on the outcome of the Bank of England's policy meeting expected later in the day, though no change is expected.

U.S. DATA: Factory activity expanded at the fastest rate in more than two years in January, according to a monthly survey by the Institute for Supply Management. Meanwhile, employment strengthened at U.S. companies for the same month, according to a survey by ADP. The reports add further evidence that the world's biggest economy continues to improve but investors may be growing wary of risky investments in light of U.S. President Donald Trump's unexpected policy announcements since taking office.

MARKET VIEW: "Donald Trump's presidency comes with greater than normal risks," Shane Oliver, head of investment strategy at AMP Capital Investors in Sydney, said in a report. Eventually, "pragmatic pro-growth policies are likely to ultimately dominate populist policies. However, the Trump honeymoon with investors is likely over with a short term period of correction/volatility likely to continue in shares, bond yields and the U.S. dollar."

WALL STREET: Major U.S. benchmarks were little changed. The Dow Jones industrial average rose 0.1 percent to close at 19,890.94. The Standard & Poor's 500 eked out a tiny gain to end at 2,279.55. The Nasdaq composite added 0.5 percent to 5,642.65.

CURRENCIES: The dollar eased to 112.72 yen from 112.98 yen in late trading Wednesday. The euro crept up to $1.0789 from $1.0778.

ENERGY: U.S. crude oil futures slipped 30 cents to $53.58 a barrel in electronic trading on the New York Mercantile Exchange. The contract added $1.07, or 2 percent, to close at $53.88 a barrel on Wednesday. Brent crude, the benchmark for international oil prices, lost 22 cents to $56.58 a barrel in London.

You may also like these

Global stocks dip ahead of release of Fed minutes

Aug 17, 2016

Global stocks and the price of oil dipped Wednesday as investors awaited the release of the minutes...

China tightens control of online news after...

Aug 19, 2016

The Chinese government is holding chief editors of news websites personally liable for content...

World stocks slip as investors eye timing of Fed...

Aug 19, 2016

World stock markets have turned lower as investors speculate whether the U.S. Federal Reserve will...

Obama's Asian pivot leaves closer ties, new...

Sep 3, 2016

As Barack Obama embarks on what is likely to be his final trip to Asia as the American president,...

Britain's May seeks out new trading relations...

Sep 4, 2016

British Prime Minister Theresa May says she intends to seize new trading opportunities for a...

Search
Financial Markets

About Us

Established in 2015, The Upstocker provides insights on financial reports, commentary, and investment data to traders so that you can make better investment decisions.

Contact us: sales[at]theupstocker.com

Subscribe Now!