US Fed comments continue to buoy Asia

March 31, 2016 2:04 am Published by

US Fed comments continue to buoy markets in Asia

  • 31 March 2016
  • From the section Business

US Fed

Markets in Asia were in positive territory early on Thursday as investors continued to find solace in Fed comments about US interest rates.

Earlier this week, US Federal Reserve chair Janet Yellen said the Fed should “proceed cautiously” before raising interest rates.

Wall Street was also spurred by the comments and saw its second day of gains on Wednesday.

The benchmark Nikkei 225 was up 0.49% to 16,966.24in early Thursday trade.

Tokyo-listed shares in Sharp were down 3.7% however after Taiwanese manufacturer Foxconn said it had finally agreed a deal to take over struggling Japanese electronics company.

Foxconn said the deal was worth 389bn yen ($3.5bn; £2.4bn) and would give it a 66% stake in Sharp.

In Australia, the benchmark S&P/ASX 200 index was up 1.57% to 5,088.2 points as the prospect of slower rate rises in the US buoyed investor sentiment.

Meanwhile, South Korea’s benchmark Kospi index was up just 0.08% to 2,003.66.

Official numbers showed industrial production in Asia’s fourth largest economy increased by 3.3% from a month earlier, marking the biggest monthly increase since late 2014.

In China, some of the country’s largest banks reported lacklustre earnings growth late on Wednesday.

Profits for the Industrial & Commercial Bank of China (ICBC) and China Construction Bank both grew at less than half a percent. Industry-wide, nonperforming loans rose to 1.67% of total loans last year, up from the previous year.

Agricultural Bank of China, the country’s third-largest lender, is expected to report its results later.

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This post was written by FSB News