Il Nuovo Postiglione - Asian markets fall after US data dent rate cut hopes

NYSE - LSE

CMSC	-0.53%	20.81	$
RIO	0.42%	103.27	$
BTI	-1.12%	55.35	$
RYCEF	0.7%	19.92	$
BP	0.52%	43.81	$
BCE	-0.59%	23.67	$
RBGPF	0%	70	$
AZN	-1.27%	162.7	$
NGG	-0.06%	78.12	$
GSK	-1.96%	49.89	$
CMSD	-0.34%	20.69	$
VOD	1.89%	16.9	$
BCC	2.64%	79.21	$
RELX	-3.21%	35.51	$
JRI	-0.58%	12.14	$

Asian markets fall after US data dent rate cut hopes

ECONOMY 24.05.2024

Asian markets fall after US data dent rate cut hopes / Photo: Bertha WANG - AFP

Markets fell in Asia on Friday, tracking a sell-off on Wall Street sparked by a string of better-than-expected US data that added to worries the Federal Reserve will hold off on cutting interest rates this year.

Text size:

A weeks-long rally in equities has petered out in the past few days on profit-taking and as central bank officials pushed back against bets on an early reduction.

Confidence was dealt a further blow Thursday as a closely watched gauge of the services sector showed services activity rose at its fastest pace in a year, while the factory sector also beat forecasts.

Meanwhile, fewer people than estimated made unemployment claims, suggesting the labour market remains tight.

The readings indicated the world's top economy was still in rude health, quelling the excitement sparked by last week's news that the consumer price index slowed in April after three months of topping forecasts.

"The data erase some of the cooling signals in recent outcomes and contrast the month-long run of broader US data tending to surprise on the soft side," said Taylor Nugent of National Australia Bank.

The figures came after minutes from the Fed's May policy decision showed decision-makers wanted to keep borrowing costs elevated until they are confident prices are under control, while some even said they were willing to hike again.

FHN Financial's Chris Low said: "The minutes are a reminder that while the Fed does not see another rate hike as likely -- and certainly does not see it as a base-case -- it will not rule out hikes if inflation does not behave."

All three main indexes in New York ended in the red, and Asia followed suit.

Hong Kong fell for a fourth straight day, having hit a nine-month high earlier in the week, while there were also losses in Tokyo, Shanghai, Seoul, Singapore, Sydney, Wellington, Taipei and Manila.

The prospect of interest rates remaining at two-decade highs through most of the year put upward pressure on the dollar.

Investors are paying particular attention to the yen after Japanese officials recently stepped into forex markets when it hit a 34-year low against the greenback.

The Japanese unit was also weighed by data showing inflation eased last month, leading to speculation about when the country's central bank will lift interest rates again, having hiked in March for the first time in 17 years.

The slowdown in prices will not "deter financial markets from speculating on further Bank of Japan policy tightening", said Kristina Clifton, at Commonwealth Bank of Australia.

But she added that "at this stage, we expect the BoJ to wait until around October before increasing interest rates again".

- Key figures around 0230 GMT -

Tokyo - Nikkei 225: DOWN 1.2 percent at 38,649.15 (break)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 18,662.59

Shanghai - Composite: DOWN 0.1 percent at 3,114.54

Dollar/yen: UP at 157.14 yen from 156.93 yen on Wednesday

Euro/dollar: DOWN at $1.0809 from $1.0815

Pound/dollar: DOWN at $1.2693 from $1.2696

Euro/pound: UP at 85.18 from 85.16 pence

West Texas Intermediate: UP 0.1 percent at $76.92 per barrel

Brent North Sea Crude: UP 0.1 percent at $81.40 per barrel

New York - Dow: DOWN 1.5 percent at 39,065.26 (close)

London - FTSE 100: DOWN 0.4 percent at 8,339.23 (close)

I.Altadonna--INP

Featured

Bangladesh measles toll nears grim 1,000-child mark

Bangladesh's deadliest measles outbreak in decades is nearing the grim milestone of 1,000 child deaths, as a devastating epidemic sweeps through the country and crowded hospital wards fill with struggling babies.

Bolivia farmers return to streets over diesel price hikes

Several hundred coca farmers and supporters of former Bolivian president Evo Morales demonstrated in the central city of Cochabamba on Friday over the government's doubling of diesel prices, AFP reporters said.

S&P Revises Outlook on Freedom Holding Corp. and Core Subsidiaries to Positive

S&P Global Ratings has revised the outlook on the long-term credit ratings of Nasdaq-listed Freedom Holding Corp. and its four core operating subsidiaries from “stable” to “positive,” while affirming their international credit ratings.

Moody’s Assigns First-Time Insurance Financial Strength Ratings to Freedom Insurance and Freedom Life

Moody’s Ratings has assigned insurance financial strength ratings to two Freedom Holding Corp. (Nasdaq: FRHC) insurance subsidiaries for the first time. Freedom Finance Insurance JSC, operating as Freedom Insurance, received Ba1 local- and foreign-currency insurance financial strength ratings, while Freedom Life JSC received Baa3 ratings. Both carry stable outlooks.