Fed pegs short-term interest rates close to 0, Asian stocks rallied
Most of Asia’s major stock indexes rose in the afternoon session of April 29 after the US Federal Reserve (Fed) continued to implement loosening monetary policy.
|South Korea’s Kospi increased by 0.23% in the afternoon session of April 29. Photo: AFP|
South Korea’s Kospi index edged up this afternoon to 0.23%, while Australia’s S & P / ASX 200 index rose at the same rate of 0.23%. The mainland Chinese stock market recorded mixed movements, with the Shanghai Composite Index edging up 0.17%, while the Shenzhen Component slipped 0.12%. On the Hong Kong market, the Hang Seng index rose 0.62%.
The Japanese stock market today closed for a holiday. Overall, the MSCI Asia-Pacific (excluding Japan) increased 0.48%.
Investors closely followed the stock movements of Apple suppliers in Asia after the US technology “giant” announced that the first quarter of 2021 sales rose 54% over the same period last year. . In South Korea, LG shares lost 3.05%, while shares of Taiwan chip maker TSMC slipped 0.17%. On the Hong Kong market, shares of mobile phone components maker AAC Tech rose 0.34%.
The Fed on April 28 decided to bring short-term interest rates close to 0 when the agency decided to buy $ 120 billion worth of bonds per month. Fed Chairman Jerome Powell said that the recovery was “uneven and far from the level of completion”. Fed Chairman said that it is not time to discuss the limitation of adaptive monetary policy, including buying on assets.
In his speech to the US Congress on April 28, after nearly 100 days in office, President Joe Biden said he welcomes competition from China, but that American interests will remain preserved in all aspects. . Biden’s assertion is made in the context of the US-China relationship still “frozen” in many areas from trade to issues related to accusing China of abusing human rights.
On the money market, the US dollar index against other strong currencies this afternoon decreased to 90,578, from 90.9 normally seen in the week. The Japanese Yen remained stable and converted 108.63 JPY / USD compared to the beginning of the week, while the Australian dollar inched up and converted 1 AUD for 0.7786 USD, compared to 1 AUD / 0.776 USD .
Oil prices traded on Asian hours this afternoon increased. Futures prices for Brent crude rose 0.33% to $ 67.49 / barrel while the US crude futures price edged up 0.27% to $ 64.03 / barrel.