World Economy

Asia Markets Climb

Asia Markets ClimbAsia Markets Climb

Asian markets climbed on Tuesday as mixed readings on the US economy and comments from a top Federal Reserve official raised expectations that US interest rate rises would be gradual.

The gains came despite a negative lead from New York and Europe where traders are awaiting key events this week, including Chinese growth data, the last presidential debate and a European Central Bank policy meeting, Channel NewsAsia reported.

While investors globally expect US interest rates will rise by the end of the year, the figures tempered expectations about the pace of rises after December.

Fed Vice Chairman Stanley Fischer said interest rates would likely be suppressed by several factors, including weak economic growth at home and abroad and low corporate investment.

The news added to downward pressure on the dollar, which fell against the yen, euro and even the pound in New York. And while it edged back against the yen in Asia on Tuesday, it continued to struggle against the euro and pound.

Regional stock markets rallied on the prospect of rates staying low for longer. Tokyo ended 0.4% higher as the dollar pared early losses against the yen. Hong Kong ended 1.6% higher and Shanghai closed up 1.4%.

Sydney gained 0.4% and Seoul put on 0.6%, while Singapore was up 0.5%. Manila surged 2.9%, while there were also healthy gains in Taipei and Jakarta.

In early European trade, London added 0.6%, Frankfurt gained 0.5% and Paris rose 0.7%.

Attention turns to the release Wednesday of Chinese third-quarter economic growth figures, with an AFP survey predicting a slowdown from the previous three months.

The figures will be closely watched after last week’s disappointing China trade results were tempered by a better-than-expected inflation reading.


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