Arab Today, arab today fed rate hike spurs fresh rally in asia stocks dollar
Last Updated : GMT 13:57:49
Arab Today, arab today
Arab Today, arab today

Fed rate hike spurs fresh rally in Asia stocks, dollar

Arab Today, arab today

Arab Today, arab today Fed rate hike spurs fresh rally in Asia stocks, dollar

Sydney stocks climbed 1.5% by closing on December 17, 2015
Hong Kong - AFP

Asian stock markets rallied for a second day on Thursday and the dollar clocked up advances against most other currencies after the Federal Reserve finally lifted interest rates for the first time in almost a decade.

The widely expected move was met with a surge in shares in New York and Europe as well as Latin America as the US central bank reiterated its view that the world's number-one economy is in rude health.

It also brings to an end months of speculation and uncertainty that had rattled world markets and fuelled concerns that the economy's recovery was not as strong as thought.

"There's a sense of relief that they finally raised rates," said Chris Green, a strategist at brokerage and wealth management firm First NZ Capital Group in Auckland.
"This is a net positive in terms of market sentiment. It's removed the point of lift-off from the discussion, we're over that hurdle. Now the question is: how gradual is that normalisation profile and where do the risks lie," he told Bloomberg News.

Fed chair Janet Yellen said the decision "recognises the considerable progress that has been made toward restoring jobs, raising incomes and easing the economic hardship of millions of Americans."

Rates were cut to near-zero in 2008 by the Fed as part of a drive to fend off the ravages of the global financial crisis as it tore into the US economy, scything jobs and sending world stocks into free fall.

The bank now sees US growth picking up pace to 2.4 percent next year despite a slowdown in most other world economies, particularly China, and also stressed future rate hikes would be "gradual", forecasting 100 basis points throughout 2016.

- 'Upward momentum' -
Yellen said the move represents a US economy that "is a source of strength to the emerging markets and other economies around the globe".

However, she added that there was still room for improvement in the jobs market while inflation was still below target.

Asian traders tracked global gains. Tokyo ended 1.6 percent higher, Shanghai put on 1.8 percent and Sydney climbed 1.5 percent.

Hong Kong added 0.5 percent in the afternoon.

"What is clear is that equity markets are taking the rate hike as a positive," said IG Markets analyst Angus Nicholson.

"The fact that the Fed were able to hike rates indicates that the US economy has finally developed enough upward momentum," he added.

The rally comes after a torrid month that saw equities battered -- including nine straight losses in Hong Kong -- by concerns about the global outlook and plunging oil prices that skittled energy firms. Despite the upbeat sentiment, oil prices remain bolted to seven-year lows.

In currency trading the dollar pushed higher against the yen and euro in US trade and extended those gains in Asia Thursday. It bought 122.50 yen, compared with 121.87 yen Thursday in Tokyo, while the euro was at $1.0855 against $1.0936.

The greenback was also higher against most emerging market currencies, including the Australian dollar, Malaysian ringgit, South Korean won and Singapore dollar. However, the rises were muted as most of the rate increases had been priced in previously, analysts said.

- Key figures at 0720 GMT -

Tokyo - Nikkei 225: UP 1.6 percent at 19,353.56 (close)

Hong Kong - Hang Seng: UP 0.3 percent at 21,772.50

Sydney - S&P/ASX200: UP 1.5 percent at 5,102.00 (close)

Shanghai - composite: UP 1.8 percent at 3.580.0 (close)

Euro/dollar: DOWN to $1.0855 from $1.0911 in New York Wednesday

Dollar/yen: UP to 122.50 yen from 122.26 yen

New York - Dow: UP 1.3 percent at 17,749.09 (close)

London - FTSE 100: UP 0.7 percent at 6,061.19 points (close)

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fed rate hike spurs fresh rally in asia stocks dollar Arab Today, arab today fed rate hike spurs fresh rally in asia stocks dollar

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4

GMT 12:30 2017 Friday ,24 February

Norway's Telenor to leave Indian telecom market

GMT 10:17 2017 Friday ,24 February

Dow stands out as global stocks tread water

GMT 16:11 2017 Thursday ,23 February

Bahrain Bourse daily trading report

GMT 16:08 2017 Thursday ,23 February

BHB holds VAT seminar
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday