ASIA MARKETS: Asian Stocks Slide Lower After Fed Minutes Released
February 22 2017 - 11:05PM
Dow Jones News
By Ese Erheriene
Bank stocks dip after Fed releases minutes
Stock markets across Asia were broadly lower early Thursday,
following lackluster performance on Wall Street overnight, as
investors digested the latest Federal Reserve meeting minutes.
Markets have mostly drifted this week, seeing short-term moves
ahead of key events before correcting as the muted impact
wanes.
The Nikkei Stock Average fell 0.4%, moving in a tight range due
to a slightly stronger yen. Australia's S&P/ASX 200 was down
0.3%, while Hong Kong's Hang Seng Index was off 0.4%.
Overnight, the Federal Open Market Committee released the
minutes of its two-day meeting ended Feb. 1, where members believed
it might be appropriate to lift U.S. interest-rates "fairly soon."
Additionally, proposed tax cuts by the Trump administration and new
spending could see rates increase further to keep a lid on
inflation.
But the minutes didn't offer a clear sign on when the Fed will
next raise rates, disappointing some investors. Among key U.S.
indexes, the S&P 500 and the Nasdaq both slipped 0.1%, while
the Dow Jones Industrial Average ended up 0.2%.
Bank stocks, which rallied in anticipation of the minutes, were
lower across the region. The Hang Seng finance subsection was 0.4%
lower, while Japan's Topix bank subsection fell 1.6%.
"We still believe in [a rate increase] three times, so we're
trying to stick with that assumption, but I think the feeling is
getting more and more [that] there may be only two," said Arthur
Kwong, head of Asia Pacific equities at BNP Paribas Investment
Partners.
In corporate news, shares of Nissan Motor (NSANY) were down
0.9%, underperforming the broader market, after Chief Executive
Carlos Ghosn said early Thursday he will step down in April and be
replaced by his recently appointed co-CEO. Ghosn will remain as
chairman of Nissan, however.
Shares in oil companies rebounded following strong declines in
the previous session, amid concerns about the high level of U.S.
stockpiles. Brent , the benchmark oil price, was recently up 0.8%.
In Australia, Oil Search (OSH.AU) was up 0.3% and Woodside
Petroleum (WPL.AU) added 0.8%, while Japan's Inpex was up 1.2%.
In Korea, the benchmark Kospi index was flat as the country's
central bank kept interest rates unchanged, as expected. However,
ING said it had "penciled in a cut for the first quarter on the
view that it would be needed to reduce the drag on activity from
elevated political noise."
In currencies, the yen was last 0.1% higher against the dollar,
which pressured Japanese exporters' bottom lines by making it more
expensive for them to ship their goods around the globe.
Later in the global trading day, investors will be watching for
market-moving data such as Germany's gross domestic product and
U.S. jobless claims.
(END) Dow Jones Newswires
February 22, 2017 22:50 ET (03:50 GMT)
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