Arab News Headlines

Asian stocks follow Wall St higher ahead of Fed chair speech

Beijing, Asian stock markets followed Wall Street higher on Friday ahead of a speech by the Federal Reserve chair that investors hoped would shed light on plans for more interest rate hikes.

Shanghai, Tokyo, Hong Kong and Seoul advanced. Oil prices rose, reports AP.

Investors focused on Chair Jerome Powell’s speech at the Fed’s annual Jackson Hole meeting for signs of when the U.S. central bank might raise rates again and by how much to cool inflation that is running at multi-decade highs.

Traders worry the Fed’s four rate hikes this year, plus increases by central banks in Europe and Asia, might derail global growth.

Some expect the Fed to reverse course and start cutting rates in 2023 due to signs the U.S. economy might be cooling.

225 in Tokyo jumped 0.9% to 28,745.42. The Hang Seng in Hong Kong gained 0.6% to 20,084.62.

The Kospi in Seoul added 0.5% to 2,490.33 and Sydney’s S&P-ASX 200 surged 1% to 7,121.40. New Zealand and Southeast Asian markets also rose.

Global markets have swung between optimism about stronger corporate profits and unease about possible recession risks.

On Wall Street, the S&P surged 1.4% to 4,199.12 for its biggest daily increase in nearly two weeks.

The Dow Jones Industrial Average rose 1% to 33,291.78. The Nasdaq composite climbed 1.7% to 12,639.27.

All three indexes reduced their losses for the week after a tumble Monday that was their in months.

Also Thursday, the government reported the U.S. economy didn’t contract by as much as previously thought during the spring. It shrank 0.6% on an annualized basis, the government said, less than the previous 0.9% estimate.

Investors are hoping for clarity from Powell after Fed officials said they still supported rate hikes despite hopes inflation might be peaking.

In energy markets, benchmark U.S. crude gained 82 cents to $93.34 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.37 on Thursday to $92.52.

Brent crude, the price basis for international trading, advanced 79 cents to $99.25 per barrel in London. It lost $1.88 the previous session to $99.34.

The dollar gained to 136.66 yen from Thursday’s 136.46 yen. The euro edged up to 99.71 cents from 99.69 cents.

Source: Bahrain News Agency