Pedestrians monitor Tokyo Stock Exchange index in front of a securities firm. Japanese shares yesterday gained 0.99% to close the trading at 19,754.36 points.
AFP/Tokyo
Major Asian markets mostly advanced yesterday following rallies on Wall Street and in Europe, while the dollar continued to struggle after the Federal Reserve dampened expectations for an early interest rate rise.
Tokyo ended 0.99% higher, adding 194.14 points, to 19,754.36 while Shanghai surged 1.95%, or 70.41 points, to 3,687.73 and Hong Kong added 0.49%, or 119.27 points, to 24,494.51.
Seoul was flat, dipping 0.65 points to 2,036.59 and Sydney eased 0.32%, or 19.4 points, to 5,956.1.
With few catalysts to drive business early in the week, investors took their lead from their US counterparts who have been cheered by the Fed’s dovish comments on rates.
While the central bank on Wednesday opened the door for a rise this year, it said there were still weaknesses in the US economy, including low inflation and soft manufacturing. The news sent global shares soaring and the dollar tumbling.
In currency trading yesterday the dollar bought 120.09 yen in afternoon trade, down from 120.11 yen in New York and well off the 120.71 yen in Tokyo earlier Friday.
The euro bought $1.0770 compared with $1.0821 but is well up from the levels below $1.05 seen at the start of last week. The single currency was also at 129.41 yen against 129.98 yen.
“The overriding factor for the Fed is whether they can afford to overstimulate the economy or raise rates too soon,” Tim Schroeders, a portfolio manager at Pengana Capital in Melbourne, told Bloomberg News.
“They can’t be too aggressive in raising rates as the underlying US economy isn’t as strong. Equities will continue to trend higher but as valuations become stretched, markets will be more vulnerable to a pullback.”
Oil prices drifted lower again owing to ongoing concerns about a global supply glut.
US benchmark West Texas Intermediate for May delivery was down 95 cents at $45.62 and Brent tumbled 85 cents to $54.47.
Gold fetched $1,183.26 against $1,172.01 late Friday.
In other markets, Taipei was marginally higher, edging up 8.40 points to 9,758.09; Wellington was also slightly higher, putting on 3.85 points to 5,875.23; Manila closed 0.28%, or 22.11 points, higher at 7,840.49; Singapore closed down 0.07%, or 2.31 points, to 3,410.13, with little market reaction to the death of founding prime minister Lee Kuan Yew; Kuala Lumpur closed 7.80 points lower, or 0.43%, at 1,795.85; Bangkok dropped 0.65%, or 9.95 points, to 1,520.01 and Jakarta ended down 0.11%, or 5.97 points, at 5,437.10.
