Asian stocks mostly rose today (July 30th) after the US Federal Reserve decided to leave its benchmark short-term interest rate near zero.
In a statement yesterday after a two-day policy meeting, the Fed said that while it is seeing improvement in the job market and the overall economy, there are concerns that inflation remains too low. It also did not give any indication about the timing of the first rate increase.
"You have to hand it to the Federal Reserve. They look primed to put up the Fed funds rate in September, perhaps December. Yet at the same time, equities looks supported and the yield curve remains unchanged," IG chief strategist Chris Weston said in a market commentary. "If the object of its communication exercise is to ease the market into a normalisation process without causing a stir in capital markets, then you would give their performance a nine out of ten."
Meanwhile, the Shanghai Composite Index fell again today after rebounding 3.5 per cent yesterday, despite the government intervention to stabilise markets. The index lost 2.2 per cent to 3,705.77.
Hong Kong's Hang Seng was down 0.5 per cent to 24,497.98 and Tokyo's Nikkei 225 gained 1.1 per cent to 20,525.80. Australia's S&P/ASX 200 edged up 0.8 per cent to 5,669.50, while Seoul's Kospi slid 0.9 per cent to 2,019.03.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.