Persistent concerns about when US monetary chiefs will act to cool an overheating post-pandemic economy had a calming effect on nervous investors
Asian markets enjoyed mixed fortunes on Thursday with investors taking a breather after the latest rally and still trying to second-guess when the Federal Reserve will begin to wind down its vast monetary easing programme.
After a troubled start to the week, equities across much of the region have enjoyed healthy gains in the past two days as US central bank chiefs looked to temper fears that record-low interest rates and colossal bond-buying were in their final throes.
Traders have for months worried that the blistering global recovery will fan inflation and force officials to act.
Also on AF: China hopes metals sell-off will calm molten market
And the Fed – which has consistently said recent inflation spikes were temporary and it will maintain its policy as long as the economy needs – last Wednesday suggested for the first time it could lift borrowing costs in 2023, a year earlier than initially targeted.
The past few days have seen a number of top officials try to tame expectations, which provided some solace, but traders remain nervous.
On Wall Street, the Dow and S&P 500 closed slightly lower, though the Nasdaq ended at another record high.
Asian investors jockeyed for position, with markets fluctuating through the day. Hong Kong, Singapore, Seoul, Taipei and Mumbai all rose but Sydney, Bangkok, Jakarta and Manila fell. Tokyo, Shanghai and Wellington were flat.
London, Paris and Frankfurt were up in early trade.
OIL RISE
Oil prices rose again, having dipped slightly after Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said OPEC and other major producers had a part in “taming and containing, by making sure that this market doesn’t get out of hand”.
The sharp rise in commodities this year has played a key role in the spike in inflation.
His comments come just ahead of the latest output policy meeting of the group and as crude prices sit around multi-year highs. Some analysts have forecast they could possibly go as high as $100 as demand continues to pick up with the global recovery.
MARKETS
Tokyo – Nikkei 225: FLAT at 28,875.23 (close)
Hong Kong – Hang Seng Index: UP 0.2% at 28,882.46 (close)
Shanghai – Composite: FLAT at 3,566.65 (close)
New York – Dow: DOWN 0.2% at 33,874.24 (close)
- Reporting by AFP
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