Asian markets rallied on Monday in hopes that the US Federal Reserve would re-evaluate its Hawk position at a meeting later this week after signs of slower global growth emerged.
The Japanese Nikkei 225 Index
NIK, + 0.62%
added 0.6% and the Kospi
SEU, + 0.08%
in South Korea gained 0.1
HSI, + 0.09%
gained 0.1%, while the Australian S & P ASX 200
XJO, + 1.00%
was 0.9% higher. The shares in Taiwan were higher
Y9999, + 0.14%
STI, + 1.15%
fell in Indonesia
The Shanghai Composite Index
SHCOMP, + 0.16%
rose 0.1%, while the Shenzhen Composite with lower capital
fell 0.4% ahead of China's Central Economic Work Conference this week, where policymakers are expected to adopt a pro-active fiscal policy and commitment to pursue supply-side reforms.
Movers, SoftBank Group
9984, + 0.52%
rose this week ahead of the anticipated IPO of its mobile unit, while Samsung Electronics
005930, + 0.51%
gained more than 1%. Hong Kong-listed casino company Wynn Macau
and Galaxy Entertainment
and shares of Australian banks such as the ANZ Banking Group
On Friday, weak economic data from China and Europe worried about the global economy, bringing equities down to an eight-month low. The mood was also dampened by the chaos surrounding Britain's upcoming exit from the European Union. The S & P 500 index
gave up 1.9% t to 2.599.95, the lowest level since April 2nd. The Dow
fell 2% and the Nasdaq composite
was 2.3% lower. All of the major US indices have fallen more than 10 percent since their record highs and have achieved a "correction" mark on Wall Street. Markets Expect the Elusive "Santa Claus Rally" That Normally Declares December the Best Month of the Year
It is expected that the Federal Open Market Committee will set its short-term interest rate – a benchmark for many consumer and corporate credits – after a meeting on Wednesday increased by a modest quarter point to 2.25% to 2.5%. This would be the ninth increase since the end of 2015. Markets will see changes to the policy statement and a press conference by Chairman Jerome Powell. The central bank forecasts three more rate hikes for 2019, but weaker global growth could lead to a shift in hawk holdings. Last week, China announced that industrial production and retail sales had slowed in November.
"The hoped-for Santa Rally proved frustratingly elusive, and now the markets are quite happy, if not desperate, at least a moderate line tossed by the FOMC," said Vishnu Varathan of Mizuho Bank in a market commentary. Markets "are attacking straws led by hopes that material change in Hawaiian bias will occur," he added.
Tomorrow, "said Stephen Innes, head of Asia-Pacific Trade in Oanda, in a statement to customers on Monday. "And both events have a smoothing effect on risk appetite."
"We should expect a series of incentives from China's policymakers to stabilize the domestic economy," Innes added. "On the Fed front, the market is betting on a cautious raise that should be so friendly as to stabilize the equity risk situation by the end of the year."
Benchmark US crude oil
CLF9, + 0.06%
added 12 cents to electronic trading on the New York Mercantile Exchange at $ 51.32 a barrel. The contract fell by $ 1.38 to settle on Friday in New York at $ 51.20. Brent crude
which was used for the price of international oils, gained 7 cents to $ 60.35 a barrel.
USDJPY, + 0.05%
surged to 113.46 yen from 113.38 yen on late trading on Friday. The euro rose from $ 1,1306 to $ 1,1312.
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