Asian Shares Up On Lower Fed Rate Hike

Asian shares gained Thursday, although optimism about the Federal Reserve holding back on aggressive interest rate raises was countered by some uncertainty about coronavirus restrictions in China.

Photo Insert: Trading was relatively muted in Asia ahead of U.S. markets being closed for Thanksgiving.

Trading was relatively muted in Asia ahead of U.S. markets being closed for Thanksgiving. Benchmarks rose in Japan, Australia and South Korea. They rose in Hong Kong but fell in Shanghai. Oil prices fell, Yuri Kageyama reported for the Associated Press (AP).

Japan’s benchmark Nikkei 225 jumped 1.0% to finish at 28,383.09. Australia’s S&P/ASX 200 added 0.1% to 7,241.80. South Korea’s Kospi gained nearly 1.0% to 2,441.33. Hong Kong’s Hang Seng rose 0.6% to 17,626.00, while the Shanghai Composite fell 0.3% to 3,089.31.

Stocks closed broadly higher on Wall Street after minutes from the Federal Reserve’s most recent policy meeting showed central bank officials agreed that smaller rate hikes would likely be appropriate “soon.”

The S&P 500 rose 0.6% to 4,027.26, while the Dow Jones Industrial Average gained 0.3% to 34,194.06. The Nasdaq composite closed 1% higher to 11,285.32. The Russell 2000 index of smaller companies edged higher, adding 0.2% to close at 1,863.52. Long-term Treasury yields fell.

The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.69% from 3.76%. The central bank’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March. It has warned that it may have to ultimately raise rates to previously unanticipated levels to cool the hottest inflation in decades.

Technology stocks and some big retailers helped drive a big share of the gains in the benchmark S&P 500 index Wednesday. Chipmaker Nvidia rose 3% and Target rose 3.5%. Homebuilders rose broadly following a government report showing that sales of new U.S. homes rose more than expected in October.

Lennar gained 1.6% and D.R. Horton rose 2.2%. In energy trading, benchmark U.S. crude lost 47 cents to $77.47 a barrel. Brent crude, the international standard, fell 66 cents to $84.75 a barrel.

In currency trading, the U.S. dollar fell to 138.87 Japanese yen from 139.57 yen. The euro cost $1.0435, up from $1.0399.

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