Asian Markets Mixed After U.S. Fed Cuts Rate by Quarter Point

This post was originally published on this site
© Reuters. © Reuters. – Asian markets were mixed in morning trade on Thursday after the U.S. Federal Reserve slashed its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%, as expected.

The slipped 0.1% by 10:45 PM ET (02:45 GMT), while the inched up 0.1% after China reported that the country’s official purchasing managers’ index for manufacturing came in at 49.3 in October. The number was previously expected to stay flat .

Hong Kong’s gained 1.2%.

Traders also paid attention to the Sino-U.S. trade front, as Chile unexpectedly cancelled November’s APEC meeting where Beijing and Washington were said to be signing a partial trade pact. The cancellation was due to social unrest that continued to rock Santiago, reports said.

Japan’s gained 0.3%. The Bank of Japan sets policy on Thursday and Governor Haruhiko Kuroda will hold a news conference.

South Korea’s jumped 1.1%. Index heavyweight Samsung Electronics (KS:) reported on Thursday that its operating profit for the third quarter fell 56% year-on-year. The number ticked up almost 18% from the last quarter and was higher than the company’s guidance provided earlier this month.

For the fourth quarter, Samsung (KS:) said it expects “demand for components to turn sluggish in general amid weak seasonal effects, while marketing expenses are likely to increase to address year-end smartphone sales.”

Down under, Australia’s fell 0.5%.

Overnight, the U.S. Fed altered language in a post-meeting statements and indicated that it may pause rate cuts from here, as it removed a key clause that said the Fed was committed to “act as appropriate to sustain the expansion.”

Fed Chair Jerome Powell said in a news conference that central bank officials “see the current stance of monetary policy as likely to remain appropriate.”

“We see the current stance of policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment