Asian stocks further up as Dow Jones rises
Tokyo, Hong Kong, Seoul and Shanghai closed higher; Higher rates tend to hit tech and other high-growth stocks the hardest; Apple and Microsoft were 2 heaviest drags on the S&P 500
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Bangkok: Stocks were mostly higher in Asia on Tuesday after a mixed session on Wall Street dominated by speculation the Federal Reserve may tap the brakes again on financial markets and the economy by raising interest rates. Shares rose in Tokyo, Hong Kong, Seoul and Shanghai. US futures edged higher and oil prices also gained. Monday was the first US trading day after the release of data showing a stronger than expected jobs market in March, which might keep inflation high. That has reinforced expectations the Fed may hike interest rates again at its next meeting. In Japan, the new central bank governor indicated late Monday that he expects to keep its ultra-low interest rate policy in place without drastic changes.
Bank of Japan Gov. Kazuo Ueda did say a long-term review of the policy, which is aimed at fostering stronger economic growth by keeping inflation near a target of 2 per cent, might eventually be needed. “The upshot is that Governor Ueda is not merely making a temporary effort to not rock the policy boat, but is in fact doubling down on the policy course at present,” Mizuho Bank said in a commentary. It noted that “growing risks of a global downturn alongside monetary policy lags means that the BOJ is acutely aware that any distinct tightening now may be caught wrong-footed by a global downturn.”
In Tokyo, the Nikkei 225 index gained 1.4 per cent to 28,013.86. South Korea's Kospi also advanced 1.4 per cent, to 2,546.07. The Bank of Korea left its policy rate unchanged at 3.5 per cent for a second straight meeting, one of many regional banks that are now slowing or reversing rate increases due to signs of weakness in the global economy. Hong Kong's Hang Seng added 0.7 per cent to 20,481.02, while the S&P/ASX 200 climbed 1.3 per cent to 7,314.00. The Shanghai Composite index lost 0.2 per cent to 3,310.00. On Monday, the S&P 500 edged 0.1 per cent higher to 4,109.11. Big tech stocks fell more than the rest of the market, which helped pull the Nasdaq composite down less than 0.1 per cent, to 12,084.36. It was down as much as 1.4 per cent earlier in the day. The Dow Jones Industrial Average was steadier, rising 0.3 per cent to 33,586.52. Higher rates tend to hit tech and other high-growth stocks the hardest, and Apple and Microsoft were the two heaviest drags on the S&P 500.
