Bulletin
Investor Alert

Associated Press Archives | Email alerts

Sept. 22, 2021, 10:10 p.m. EDT

Asian markets inch higher after Fed indicates easing is coming

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    China Evergrande Group (3333)
  • X
    Hang Seng Index (HSI)
  • X
    Shanghai Composite Index (SHCOMP)

or Cancel Already have a watchlist? Log In

By Associated Press

Asian shares were mostly higher on Thursday after the  Federal Reserve signaled  it may begin easing its extraordinary support measures for the economy later this year.

Shares rose in Hong Kong, Shanghai, Australia and Taiwan but fell in South Korea and Malaysia. U.S. futures were higher. Markets were closed in Tokyo.

The U.S. central bank indicated it may start raising its benchmark interest rate sometime next year, earlier than it envisioned three months ago. It also said it will likely begin slowing the pace of its monthly bond purchases “soon” if the economy keeps improving. The Fed’s been buying the bonds throughout the pandemic to help keep long-term interest rates low.

Markets also were reassured after Evergrande /zigman2/quotes/208605330/delayed HK:3333 +4.26% , one of China’s biggest private real estate developers,  said it will make a payment due Thursday.  That likely eased some concerns about heavily indebted Chinese real estate developers and potential ripple effects of possible defaults.

In Hong Kong, the Hang Seng index /zigman2/quotes/210598030/delayed HK:HSI +0.44% gained 1.8% and the Shanghai Composite index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.09% added 0.8%. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.04% surged 1.2% while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.28% dropped 0.7%. Stocks gained in Singapore /zigman2/quotes/210597985/delayed SG:STI +0.31% , Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.06% and Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -0.06% , but fell in Malaysia /zigman2/quotes/210598052/delayed MY:FBMKLCI -0.42% .

On Wall Street, the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.30% rose 1%, breaking a four-day losing streak. The benchmark index initially climbed 1.4% after the Fed issued its statement at 2 p.m. Eastern.

The other major indexes also received a bump, but shed some of their gains by late afternoon. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.02% rose 1% to 34,258.32. The blue-chip index briefly surged 520 points higher. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP +0.62% gained 1% to 14,896.85.

Bond yields mostly rose. The yield on the 10-year Treasury note wobbled up and down after the Fed’s announcement, but was holding steady at 1.31%.. The yield influences interest rates on mortgages and other consumer loans.

The Fed’s policy update was in line with what the market was expecting, analysts said. The VIX, a measure of how much volatility investors expect for the S&P 500, sank about 14% after the Fed statement.

“This was so well telegraphed that it didn’t take anybody by surprise,” said Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management.

At a news conference, Federal Reserve Chair Jerome Powell said the Fed plans to announce as early as November that it will start to taper its monthly bond purchases, should the job market maintain its steady improvement.

In other trading Thursday, U.S. benchmark crude oil lost 7 cents to $72.16 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.74 to $72.23 per barrel on Wednesday.

Brent crude , the international standard, shed 8 cents to $75.31 per barrel.

The U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0403% rose to 109.86 Japanese yen from 109.76 yen.

/zigman2/quotes/208605330/delayed
HK : Hong Kong
$ 2.69
+0.11 +4.26%
Volume: 110.06M
Oct. 22, 2021 11:59a
P/E Ratio
1.88
Dividend Yield
6.77%
Market Cap
$39.09 billion
Rev. per Employee
$4.66M
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,132.90
+115.37 +0.44%
Volume: 825,380
Oct. 22, 2021 12:05p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,598.18
+3.40 +0.09%
Volume: 21.98B
Oct. 22, 2021 12:23p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,418.40
+3.00 +0.04%
Volume: 440,431
Oct. 22, 2021 3:18p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,015.84
+8.51 +0.28%
Volume: 471,478
Oct. 22, 2021 1:18p
loading...
/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,198.42
+9.92 +0.31%
Volume: 0.00
Oct. 22, 2021 12:23p
loading...
/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
6,637.20
+4.23 +0.06%
Volume: 0.00
Oct. 22, 2021 11:28a
loading...
/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
16,879.48
-10.03 -0.06%
Volume: 0.00
Oct. 22, 2021 12:18p
loading...
/zigman2/quotes/210598052/delayed
MY : Malaysia
1,584.99
-6.63 -0.42%
Volume: 0.00
Oct. 22, 2021 12:23p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,549.78
+13.59 +0.30%
Volume: 1.90B
Oct. 21, 2021 5:03p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
35,603.08
-6.26 -0.02%
Volume: 302.12M
Oct. 21, 2021 5:03p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
15,215.70
+94.02 +0.62%
Volume: 4.25M
Oct. 21, 2021 5:16p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
114.0490
+0.0460 +0.0403%
Volume: 0.0000
Oct. 22, 2021 12:38a
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.