Environment ministry signs agreement to strengthen marine protection, promote ecotourism    Egypt, WHO discuss expanding health cooperation, development initiatives    Egypt, Sierra Leone discuss expanding cooperation in transport, infrastructure    Gaza under siege, fire: Resistance intensifies amid deepening humanitarian collapse    Chinese Premier Li Qiang arrives in Egypt for high-level talks    Service restoration underway after Cairo telecom fire, minister tells PM    Egypt's PM orders probe, pledges faster network upgrade after Ramsis Exchange blaze    Gold hits over 1-week low on stronger dollar    EGX closed mostly higher on July 9    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    Egypt, Pakistan boost healthcare ties – Cabinet    UK, Egypt strengthen cooperation on green transition, eco-tourism, and environmental investments    Escalation in Gaza as ceasefire talks remain fragile amid mounting humanitarian crisis    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt's PM, Uruguay's president discuss Gaza, trade at BRICS summit    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt teams up with private sector to boost university rankings    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger    Egypt's FM, China's Wang discuss Iran-Israel escalation    Egypt's EHA, Schneider Electric sign MoU on sustainable infrastructure    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Asia stock markets mixed as dollar surges amid Fed officials' hawkish comments
Published in Amwal Al Ghad on 05 - 10 - 2016

Asian stock markets traded mixed Wednesday, as the dollar surged after hawkish comments from the U.S. Federal Reserve officials.
Down Under, the ASX 200 closed down 0.57 percent, or 31.104 points, at 5,452.9, weighed by losses in the energy sector, which fell 0.35 percent, and a 1.36 percent slide in the materials sector.
Japan's benchmark Nikkei 225 ended up 0.5 percent, or 83.59 points, at 16,819.24, likely bolstered by a weaker yen. The dollar/yen pair was trading at 102.92 as of 2:17 pm HK/SIN, around three-week lows for the yen.
South Korea's Kospi was down 0.15 percent, recovering from losses of more than 0.6 percent earlier after better-than-expected inflation data were released.
South Korea's consumer price index (CPI) rose 1.2 percent in September from a year earlier, its highest in seven months, on the back on improved consumption.
Hong Kong's Hang Seng index was up 0.38 percent in afternoon trade.
On Tuesday, Richmond Fed President Jeffrey Lacker said there was a strong case for raising interest rates, while on Wednesday, in a speech in New Zealand, Chicago Fed President Charles Evans said he would be "fine" with hiking rates by year end as data remained supportive, Reuters reported.
Additionally, a Bloomberg report on Tuesday said the European Central Bank (ECB) might taper bond purchases before the expected March end of its quantitative easing program. The ECB later denied it had discussed the subject, Reuters reported.
But that helped to push up the dollar. The U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 96.032 at 2:33 p.m. HK/SIN, after touching levels as high as 96.442 overnight, its highest levels in almost two months.
"The most important factor [supporting the dollar is] an expectation above 60 percent now for a Fed Funds hike in December," said Jeffrey Halley, senior market analyst at OANDA, in a Wednesday note.
The dollar's strength added pressure to spot gold prices, which slid more than 3 percent overnight, the lowest since the Brexit vote result on June 24. Gold traded up 0.47 percent at $1,272.81 an ounce in Asian trade, but still below the key resistance level at $1,300.
"The sell-off which we are seeing for gold is mainly due to the reason that some Fed members have created noise again that November meeting could be live when it comes to the interest rate," Naeem Aslam, chief market analyst at Think Markets U.K., said in a Wednesday note.
The pound slipped to its lowest level since 1985 against the dollar overnight on fears over the U.K.'s impending exit from the European Union. Sterling was fetching $1.2695 at 2:36 pm HK/SIN, down from levels over $1.30 last week.
"The increasing likelihood for a hard European exit could impact London's ability to remain a key financial hub. Many investors are taking long positions, and are trying the near impossible task of picking the bottom of the pound on what will be a long, but perhaps rewarding recovery trade," Darvall said.
In Asian trade, U.S. crude oil futures climbed 0.97 percent to $49.16 a barrel, while Brent futures were up 0.86 percent at $51.31.
"All eyes now turn to the EIA crude inventory numbers tonight where yet another unexpected inventory drawdown should see the key $51.10 level in Brent broken for a move above 52.00 a barrel," said OANDA's Halley.
In commodity-related stock news, South Korea's S-Oil was upgraded by Citi Investment Research to a "buy" rating on the back of its large-scale RUC/ODC refining project. Shares of S-Oil ticked up 1.65 percent.
Meanwhile, shares of Malaysian palm oil conglomerate Sime Darby rose 2.63 percent, after its share placement to raise 2.36 billion ringgit ($570.81 million) was oversubscribed because of strong demand from institutional investors, Reuters reported.
Australia's August retail sales rose 0.4 percent from the previous month, compared with an expected rise of 0.2 percent. The improved retail sales were supported by lower interest rates and improved consumer confidence.
Mainland Chinese markets remain shut for Golden Week.
The Dow Jones industrial average closed down 0.47 percent at 18,168.45, the S&P 500 closed down 0.5 percent at 2,150.49 and the Nasdaq composite ended down 0.21 percent at 5,289.66.
Source: CNBC


Clic here to read the story from its source.