The Big Question: Are markets betting too much on a US rate hike?
Major Asian equity markets posted minor gains on Thursday morning, as investors digested the minutes from the latest US Federal Reserve meeting, which indicated that an interest rate hike this year is still on track.
In Japan, the Nikkei 225 was up 0.42 percent to 20,969 at around midday. The Japanese benchmark index is now close to the 21,000 level, trading at its highest point in nearly a decade. Shares of Kobe Steel, which saw huge sell offs on Wednesday after a data-falsification scandal, edged up 0.8 percent.
In Greater China, equities were slightly down during the morning session after strong gains on Monday. The Shanghai Composite Index was down a slight 0.17 percent to 3,382 before midday, though the CSI 300 rose 0.14 percent to 3,908 and the Hong Kong Hang Seng index rose 0.26 percent to 28,464.
Markets in Hong Kong and the Chinese mainland are also still digesting a policy speech by Hong Kong chief executive Carrie Lam, who, in her first policy address, stressed economic development over political issues, often related to the relationship with Mainland China.
In South Korea, the Kospi tacked on 0.41 percent to 2,468 before midday. That’s a fresh record for the South Korea benchmark and the second straight day of big wins after the markets reopened on Tuesday from a weeklong holiday.
Down Under in Australia, the ASX 200 also gained 0.31 percent to 5,790 at midday on Wednesday.
Talk of the Day: Minutes from the latest US Fed meeting said that another rate increase is “likely to be warranted” given “unchanged” outlook for the economy.
Also to watch: China September vehicle sales, Malaysian industrial output and Singapore retail sales numbers.
Main Market Movers – Mid-day Asian Trading Session
| Indexes | Value at Midday | Daily Change |
| Japan- Nikkei 225 | 20,969 | 0.42% |
| China-Shanghai Composite Index | 3,382 | -0.17% |
| China-CSI 300 | 3,908 | 0.14% |
| South Korea-KOSPI | 2,468 | 0.41% |
| Hong Kong –Hang Seng | 28,517 | 0.09% |
| Australia-ASX 200 | 5,790 | 0.31% |
Cryptocurrencies
Prices of cryptocurrencies pointed higher overnight during the Asian trading session Thursday morning.
As of midday in Asia, the price of bitcoin was up 1.32 percent percent to $4,885, closing in rapidly on the $5,000 all-time-high seen back in September.
Ethereum jumped 1.6 percent to $307 before midday. The virtual currency’s price showed strong momentum over night, having surged from the $300 mark.
Litecoin was nearly unchanged Thursday morning, having lost a slight 0.02 percent to $50.75 at midday. Litecoin has now been consolidating around the $50 level since the beginning of the month.
Currencies
The Japanese yen gained 0.12 percent the US dollar at midday Thursday to 112.33 per dollar.
The Chinese yuan was flat against the US dollar at 6.5870 per dollar.
The Australian dollar gained 0.37 percent on the dollar, changing hands at 1.2791 per dollar at midday.
Commodities
WTI Oil was up 0.02 percent to $51.01 per barrel.
Brent Crude down 0.11 percent to $56.60 per barrel.
Gold was up 0.31 percent to $1,294 an ounce.
Business News across Asia
In China, the Chinese government is mulling to take stakes in some of the country’s largest technology companies such as Tencent (the company behind the massively popular WeChat messaging app), Alibaba and Tudou. Government funds could enter these companies and participate in decision-making, according to Chinese media reporting.
Take away: Though this is not confirmed by any official or companies, it is a huge development because Chinese tech giants have enjoyed great independence so far and even participated in state-owned companies’ restructuring plans. Potential impact could be huge. In terms of share prices the impact is unclear, but state ownership is traditionally not considered to be a bullish factor for any company.
Comments