The Asian stock markets today’s stock prices rose, reaching the highest level in three weeks. Meanwhile, investors eagerly awaiting the decision of governors of the US central bank Federal Reserve (Fed) on interest rates, reports Yale Fishman.
The decision of the Fed and its effect on the stock market
The Tokyo Stock Exchange Nikkei index before the mid-day trading was up more than 1 percent. The prices on the stock markets in South Korea, Australia, Singapore, Shanghai, and Hong Kong increased between 0.1 and 1.2 percent. Thanks to this, Yale M Fishman says the MSCI index of Asia-Pacific shares without Japanese morning was a plus of 0.8 percent. This was their highest level in three weeks.
The good mood in the markets in the region is due to the growth of stock indices on Wall Street. Wednesday was the second day in a row with positive growth. However, it traded restrained because the leaders of the US central bank, the two-day session, will announce its decision on interest rates.
Last week most analysts predicted that the Fed will raise interest rates during this session. But, thanks to the steady growth of the US economy is now expected that the central bank will refrain from it. The main reason is the recent turmoil in the financial market, primarily in China.
“Before the Fed was a difficult decision. Even if its leaders decide to increase interest rates, you have to be very careful how you communicate further developments related to interest rates, as global markets remain vulnerable, “according to a Reuters poll of Steven Chiu, strategist at” Mitsubishi UFJ Financial Group “.
Asian stock market performance and statistics
Positive Asian stock markets influenced the stabilization of Chinese markets. Its price stagnated on Thursday morning after Wednesday jumped 5 percent. This movement according to Yale M Fishman Attorney came thanks to investors’ hopes. They are expecting the authorities in Beijing to introduce new incentives to support the growth of their economy.
On currency markets rule the decision of caution before Fed, with the US dollar strengthened against the Japanese yen. Thursday morning’s rate reached 12.70 yen. On Wednesday, in the same period of the day, it amounted to 12.20 yen. Against the euro, however, the dollar is stable, so the cost of the European currency is within the level of the middle of about 1.1290 dollars.
On oil markets, stable prices are maintained at the level of the middle jumped nearly 6 percent. This came after a decline in US stocks awaken hopes of increasing demand. The US market oil prices on Thursday morning to around 47.15 dollars per barrel, while the London market is about 49.80 dollars.