Asian stocks higher after Fed says rate hikes may be needed - Albuquerque Journal

Asian stocks higher after Fed says rate hikes may be needed

BEIJING — Asian stock markets gained Thursday after the Federal Reserve said higher U.S. interest rates might be needed to cool inflation.

Shanghai, Tokyo and Sydney advanced. Hong Kong declined. Oil prices fell more than $1 per barrel to stay below $100.

Wall Street’s benchmark S&P 500 index gained 0.4% on Wednesday after notes from the latest Fed meeting said “an even more restrictive stance could be appropriate” to get inflation back to its 2% target. They acknowledged that could weaken the economy.

Investors worry aggressive U.S. and European rate hikes to contain prices rises that are running at a four-decade high might depress global economic activity.

“Stocks rose because runaway commodity and oil prices are sinking,” said Stephen Innes of SPI Asset Management. “Both are the critical targets Fed policy is engineered to tame; hence, inflation expectation is coming under control.”

The Shanghai Composite Index rose 0.1% to 3,359.16 and the Nikkei 225 in Tokyo gained 0.8% to 26,304.12. The Hang Seng in Hong Kong lost 0.3% to 21,527.48.

The Kospi in Seoul climbed 1.8% to 2,333.74 and Sydney’s S&P-ASX 200 was 0.3% higher at 6,613.30. New Zealand declined while Southeast Asian markets advanced.

On Wall Street, the S&P 500 rose to 3,845.08. The The Dow Jones Industrial Average gained 0.2% to 31,037.68. The Nasdaq composite added 0.3% to 11,361.85.

The Fed last month raised its key interest rate by three-quarters of a point to a range of 1.5% to 1.75%, the biggest single increase in nearly three decades. Chair Jerome Powell suggested at that time a rate hike of one-half or three-quarters of a point, three times the Fed’s usual margin, was likely when policymakers meet late this month.

Notes released Wednesday from the Fed’s June 14-15 meeting confirmed other officials agreed that such an increase would “likely be appropriate.”

Inflation has been boosted by Russia’s attack on Ukraine, which pushed up prices of oil and other commodities, and Chinese anti-virus controls that shut down Shanghai and other industrial centers disrupted supply chains.

Oil prices closed below $100 per barrel on Tuesday for the first time since early May but U.S. crude is still up more than 30% this year.

Benchmark U.S. crude fell $1.04 to $97.49 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost 97 cents to $98.53 a barrel Wednesday. Brent crude, the price basis for international trading, lost $1.19 to $99.50 per barrel in London. It tumbled $2.08 the previous session to $100.69.

The dollar declined to 135.72 yen from Wednesday’s 135.98 yen. The euro gained to $1.0206 from $1.0182.

Home » Business » Money » Asian stocks higher after Fed says rate hikes may be needed


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
Teachers and parents feel inflationary 'pinch'
ABQnews Seeker
Tax-free weekend offers notable relief for ... Tax-free weekend offers notable relief for back-to-school buyers
2
Wall Street falls as jobs data suggests Fed hikes ...
Money
Stock indexes closed mostly lower Friday ... Stock indexes closed mostly lower Friday after a roller-coaster day following a blockbuster report on the U.S. jobs market that offered both good and ...
3
Asian stocks higher as US-China tensions rise
Money
Asian stock markets rose Wednesday as ... Asian stock markets rose Wednesday as traders watched for signs trade might be disrupted by U.S.-Chinese tensions over an American lawmaker's visit to Taiwan. ...
4
NM businesses reminded to adjust their GRT rate
ABQnews Seeker
The New Mexico Taxation and Revenue ... The New Mexico Taxation and Revenue Department is reminding businesses to adjust their Gross Receipt ...
5
Stocks rally again, close out best month since Nov. ...
Money
Stocks racked up more gains Friday ... Stocks racked up more gains Friday as Wall Street closed out its best month since November 2020, a welcome breather for investors after a ...
6
Inflation and wage data suggest US prices will keep ...
Money
Inflation surged in June and workers' ... Inflation surged in June and workers' average wages accelerated in the spring -- signs that Americans won't likely feel any relief from rising prices ...
7
JetBlue is buying Spirit for $3.8 billion after bidding ...
Money
JetBlue Airways is buying Spirit Airlines ... JetBlue Airways is buying Spirit Airlines for $3.8 billion in a deal that could increase competition at the top end of the U.S. airline ...
8
Fed unleashes another big rate hike in bid to ...
Money
The Federal Reserve on Wednesday raised ... The Federal Reserve on Wednesday raised its benchmark interest rate by a hefty three-quarters of a point for a second straight time in its ...
9
With Frontier deal dead, Spirit ponders sale to JetBlue
Money
Spirit Airlines and Frontier Airlines agreed ... Spirit Airlines and Frontier Airlines agreed Wednesday to abandon their merger proposal, opening the way for JetBlue Airways to acquire Spirit after a months-long ...