Asian stocks edge up on possible U.S. rate cut<\/p>\n
SINGAPORE (Reuters): Holiday-thinned Asian equity markets were
\nmostly higher on Monday aided by expectations of further U.S.
\nrate cuts and some local factors.<\/p>\n
Markets in Singapore, Indonesia, China, Thailand and Malaysia
\nwere shut for a public holiday.<\/p>\n
Shares in Tokyo finished higher after being weighed down
\nearlier as investors opted to take profits specifically in
\ntechnology shares upon returning from the Golden Week.<\/p>\n
But the market climbed after new premier Junichiro Koizumi's
\nmuch-awaited policy speech.<\/p>\n
\"There's not much fresh stuff in the speech, it seems, but
\nhopes that economic reforms may finally come to Japan have
\noutweighed investors' urges to grab profits after last week's
\nstrong gains,\" said Masatoshi Sato, equities manager at Mizuho
\nInvestors Securities.<\/p>\n
The Nikkei 225 Index closed up 107.77 points, or 0.75 percent
\nat 14,529.41.<\/p>\n
Providing positive sentiment to the Asian equity markets was
\nthe increasing likelihood the U.S. Fed would cut interest rates
\nby 50 basis points to spur growth at its next Federal Open Market
\nCommittee meeting (FOMC) on May 15, analysts said<\/p>\n
Fueling this view was the release on Friday of the worst
\nmonthly U.S. jobs report for April in a decade.<\/p>\n
Spillover from Wall Street was expected to lead to stronger
\nopening in the European courses with the healthcare sector in
\nfocus after Switzerland's Novartis bought a strategic stake in
\nrival Roche<\/p>\n
However, with the London stock exchange closed for a national
\npublic holiday, trading in Europe overall is likely to be more
\nsubdued than usual, traders said.<\/p>\n
After initially being sold down, U.S. equities closed in
\npositive territory with the Dow Jones Industrial Average
\nfinishing up 154.59 points or 1.43 percent, at 2,191.53 and the
\ntechnology-laced Nasdaq Composite Index ending up 45.33 points,
\nor 2.11 percent, at 2,191.53 points.<\/p>\n
\"The (initial) sell-off was caused by people feeling the
\neconomy was weakening more than initially thought, but after
\nthinking about it, they see it could push the Fed to be
\naggressive in cutting rates,\" said Joseph Stocke, a fund manager
\nat StoneRidge Investment Partners. \"People are looking ahead six
\nto nine months when the economy will be recovering.\"<\/p>\n
After Koizumi's speech, the yen rose against the dollar,
\nrecovering from earlier selling pressure and was quoted around
\n121.20 yen from 121.70 earlier in the day.<\/p>\n
The euro, meanwhile, was subdued as it held in a tight range
\naround 0.8915 against the dollar.<\/p>\n
A rally in global banking giant HSBC Holdings and property
\nsectors underpinned the Hong Kong bourse.<\/p>\n
HSBC was up after taking a beating late last week on
\nspeculation it may make a bid for Merrill Lynch while property
\ncounters were supported by renewed U.S. rate cut expectations.<\/p>\n
At 0630 GMT (1 p.m. Jakarta time), the benchmark Hang Seng
\nIndex was up 1.72 percent at 13,621.65.<\/p>\n
Shares in Manila dipped on concerns about violence going into
\nnext week's election prompting some light selling pressure.<\/p>\n
The market remained nervous even though President Gloria
\nMacapagal Arroyo lifted the state of rebellion at midnight on
\nSunday saying public order had been restored.<\/p>\n
The main index closed down 0.73 percent at 1,431.91.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asian-stocks-edge-up-on-possible-us-rate-cut-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }