Asia Shares Jump as Chip Selloff Eases - Asia Market Wrap
Stocks extended gains and the dollar weakened as traders pared expectations for a Federal Reserve rate hike after Chair Kevin Warsh refrained from endorsing tighter policy, despite this week’s hotter-than-expected inflation data. MSCI’s Asia Pacific equities gauge climbed 1.6%, while S&P 500 futures reversed losses of as much as 0.6% to rise 0.2%. Sentiment improved as a selloff in chip stocks eased, while Warsh highlighted the potential benefits of artificial intelligence for the US economy without directly addressing monetary policy. Traders cut the implied probability of a Fed rate hike this month to 15% after Warsh’s speech, down from more than 25% on Thursday. Bloomberg’s dollar gauge fell 0.1%, extending Thursday’s 0.3% decline — its biggest drop in more than a month. Gold rose 0.1% to around $4,175 an ounce. Treasuries remained lower on the day during Warsh’s remarks, following a broad rally across the yield curve in US trading. Asian equities were already recovering before Warsh spoke as pressure on semiconductor stocks eased. Samsung Electronics and SK Hynix each gained more than 4%, helping South Korea’s Kospi jump 4% and rebound from Thursday’s slump, which had taken the
Stocks extended gains and the dollar weakened as traders pared expectations for a Federal Reserve rate hike after Chair Kevin Warsh refrained from endorsing tighter policy, despite this week’s hotter-than-expected inflation data. MSCI’s Asia Pacific equities gauge climbed 1.6%, while S&P 500 futures reversed losses of as much as 0.6% to rise 0.2%. Sentiment improved as a selloff in chip stocks eased, while Warsh highlighted the potential benefits of artificial intelligence for the US economy without directly addressing monetary policy. Traders cut the implied probability of a Fed rate hike this month to 15% after Warsh’s speech, down from more than 25% on Thursday.
Bloomberg’s dollar gauge fell 0.1%, extending Thursday’s 0.3% decline — its biggest drop in more than a month. Gold rose 0.1% to around $4,175 an ounce. Treasuries remained lower on the day during Warsh’s remarks, following a broad rally across the yield curve in US trading. Asian equities were already recovering before Warsh spoke as pressure on semiconductor stocks eased.
Samsung Electronics and SK Hynix each gained more than 4%, helping South Korea’s Kospi jump 4% and rebound from Thursday’s slump, which had taken the index to its lowest close since April.