Spark Global Limited reports:
Stock markets across the Asia-Pacific region fell Thursday morning as investors continued to digest the minutes of the Federal Reserve’s latest meeting. The minutes suggested the Fed could accelerate its tapering of assets.
Japan’s Nikkei 225 index was up 0.83 percent as of 9:03 p.m. Est (2:03 a.m. GMT). South Korea’s KOSPI index fell 0.55 per cent after the Bank of Korea announced its policy decision to raise interest rates to 1 per cent earlier in the day.
In Australia, the ASX 200 index fell 0.16%.
Hong Kong’s Hang Seng index fell 0.52%
U.S. markets were closed Thursday for a holiday.
Minutes of the Fed’s latest meeting, released on Wednesday, suggest the central bank is open to accelerating the pace of asset reduction.
“Many participants noted that if inflation continued to rise, the Federal Open Market Committee should be prepared to adjust the pace of its asset purchases and raise the target range for the Federal funds rate sooner than participants currently anticipated,” the minutes said.
“These minutes are very hawkish,” Priya Misra, head of global rates strategy at TD Securities, told Bloomberg.
“Markets have brought forward the timing of the first rate hike to June 2022, which means the early end of QE has already been priced in. Until we get more data, the market is going to struggle.”
San Francisco Fed President Richard Daley also said it would be hard to argue against accelerating tapering if labor market and consumer price data due in early December continue to be better than expected.
In addition to the Fed minutes, US data released on Wednesday, ahead of Thursday’s holiday, showed third-quarter gross domestic product rose 2.1 per cent from the previous quarter. Data also showed new claims for jobless benefits were 99,000, the lowest level since 1969.
Across the Atlantic, Bank of England Governor Andrew Bailey will speak at a Cambridge Union event later in the day.
Meanwhile, events in Mexico have investors watching. President Andres Manuel Lopez Obrador nominated Victoria Rodriguez Ceja to head the Bank of Mexico after he withdrew the nomination of Arturo Herrera, a former finance minister.
Reprint indicated source：Spark Global Limited information