* Chinese yuan rises 0.2%
* South Korean stocks rise 0.5%
By Indranil Sarkar
Nov 4 (Reuters) - Most Asian currencies held steady on
Thursday after the U.S. Federal Reserve said it would not rush
to raise interest rates but approved plans to start unwinding
its stimulus programme, while China"s yuan touched a near
one-week high.
The Fed announced on Wednesday that it would trim its bond
buying by $15 billion a week from this month, while leaving open
the option to quicken or slow the pace as needed, but signalled
it would stay patient before raising borrowing costs.
The yuan < CNY=CFXS> firmed 0.2% high, reflecting broad
dollar weakness in global markets sparked by a dovish tone seen
in the Fed"s policy statement.
"The Federal Reserve finally accepted the economy has made
enough progress to start slowing the rate of Quantitative Easing
(QE) purchases," analysts at ING wrote in a note.
"The economy is re-accelerating and inflation will hit 6%,
meaning that pressure on the Fed to end QE early and hike rates
will undoubtedly grow."
The Thai baht, Taiwan dollar and
Philippine peso were all largely flat.
South Korean stocks rose 0.5% after falling about
1.4% on Tuesday, buoyed by technology giants Samsung Electronics
and peer SK Hynix climbing 1% and 1.9%
respectively. The won slipped 0.1%.
Share markets across the Asia Pacific firmed on Thursday
following the Fed"s decision, which analysts say could feel the
pain of the taper decision more than other regions.
"If, as expected, the U.S. dollar rally continues, and U.S.
yields rise,...(it) could lead to a burst of imported inflation
if the region’s central banks choose not to spend foreign
currency reserves defending their currencies." Jeffrey Halley,
Senior Market Analyst, Asia Pacific at OANDA said.
Stock markets in Singapore, Malaysia and India were closed
on Thursday due to a holiday.
Investors are now awaiting a Bank of England policy decision
later in the day which may kick off a rate hike cycle with
uncertain implications for debt markets globally.
HIGHLIGHTS
** Indonesian 10-year benchmark yields are up 1.3 basis
points at 6.2%
** Singapore"s 10-year benchmark yield is up 9 basis points
at 1.8%
** Malaysia, Singapore and India on holiday
Asia stock
indexes and currencies at 0437 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY YTD DAILY YTD
% % % %
Japan -0.15 -9.56 <.N225 0.77 8.40
>
China
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