Asian stocks fell after the Fed said ready to trade on inflation – Press Enterprise


BEIJING (AP) – Asian stock markets fell on Thursday after Federal Reserve officials indicated they were ready to raise interest rates faster than expected if needed to cool inflation.

Market benchmarks in Shanghai, Hong Kong, Seoul and Sydney fell. Tokyo advanced.

The Wall Street benchmark S&P 500 index rose 0.2% before the markets closed for a US holiday. They reopen Friday for an abbreviated trading session.

Fed officials said at their October political meeting that they “would not hesitate” to respond to inflation, according to notes released Wednesday. They foresaw the possibility of raising prices “rather than the participants currently expected.”

It fueled investors’ fears that the Fed and other central banks could feel pressured to withdraw economic stimulus, which has raised stock prices. Fed officials previously indicated they could raise interest rates by the end of next year.

Higher prices combined with stronger hires in the US suggest that the stance for the next Fed meeting may be “shamelessly more hawkish,” said Tan Boon Heng of Mizuho Bank in a report.

The Shanghai Composite Index fell 0.3% to 3,581.32, while the Nikkei 225 in Tokyo rose 0.7% to 29,500.57. Hang Seng in Hong Kong fell 0.2% to 24,633.67.

Kospi in Seoul retreated 0.5% to 2,979.39, and Sydney’s S & P-ASX 200 yielded less than 0.1% up to 7,379.30. New Zealand and Jakarta advanced, while Singapore declined.

On Wall Street, the S&P 500 rose to 4,701.46. Gains in technology, real estate and energy stocks offset a decline in banks and materials companies.

The Dow Jones Industrial Average fell less than 0.1% to 35,804.38. The Nasdaq composite rose 0.4% to 15,845.23.

The Fed notes showed that officials still believe that this year’s inflation rise is likely to be temporary, but they acknowledged that prices rose more than expected.

The notes covered the October meeting, in which Fed board members voted to take the first steps to roll back light credit and other measures to support an economic recovery from the coronavirus pandemic.

A large number of industries have been hit by inflationary pressures and disruptions in the supply of raw materials and components. Forecasters worry that consumers may cut consumption if retail prices continue to rise.

Consumer consumption rose 1.3% in October, slightly more than double the previous month’s increase, according to the Ministry of Trade.

The Department of Labor reported that the number of Americans applying for unemployment benefits fell last week to its lowest level in more than half a century.

In the energy markets, benchmark US crude oil rose 10 cents to $ 78.49 per barrel. barrel of electronic trading on the New York Mercantile Exchange. Brent crude oil, used to price international oil, rose 14 cents to $ 81.19 per barrel. barrel in London.

The dollar fell to 115.37 yen from 115.48 yen. The euro rose to $ 1.1219 from $ 1.1199.

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