Fed’s softer inflation stance gets bulls running in bonds, stocks and commodities
Sydney — Stocks, bonds and commodities were all on a roll in Asia on Thursday, as bulls scented a softening in the Federal Reserve’s confidence on inflation that promised to keep US interest rates low for longer than some had expected. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.9% to heights not seen since December 2007. It has gained more than 5% so far this month. South Korea and Japan’s Nikkei both added 0.2%, while Australia put on 0.3%. Stocks in the Philippines were at a one-year peak and Hong Kong’s Hang Seng index added 0.3% to push above 27,000. But concern about tighter regulations nudged China’s blue-chip CSI300 index down 0.7%, though data showed a pick up in profit growth for industrial firms. The latest rush for risk came after the Fed left US rates unmoved as expected on Thursday, and tweaked its wording on inflation. The market seized on the fact that the central bank noted that both overall and core inflation had declined, and it removed th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.