Shares in Asia rise as US interest rate hike worries ease

<p>Weak US data adds to expectations the Federal Reserve will delay hiking interest rates.</p>

Shares in Asia rose today (October 15th), boosted by a global rally, after weak economic data added to expectations the Federal Reserve would keep its monetary policy unchanged until 2016.

Fresh US retail sales and producer prices data were weaker than expected, supporting an increasingly popular view that the Federal Reserve will not start raising interest rates this year.

"The third-quarter selloff created a lot of value so people are getting involved again," Tim Condon, head of Asia research at ING in Singapore told Bloomberg.

 "Data out of the US is reinforcing that US monetary policy isn’t a threat and that helps market sentiment. China’s policy remains accommodative. Except for the ringgit, which has some issues, other currencies could claw back their third-quarter depreciations," he added.

Japan’s Nikkei 225 gained 1.2 per cent to 18,096.90 while Hong Kong’s Hang Seng index rose two per cent to 22,888.17. South Korea's Kospi was up 1.2 per cent to 2,033.27 and Australia’s S&P/ASX 200 edged up 0.6 per cent to 5,230.00. The Shanghai Composite Index jumped 2.3 per cent to 3,338.07.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.