Forex Marketz Daily Forex News – Fully Markets Update
Asian equity indices were broadly higher by Friday afternoon. Asian and regional sentiment was boosted after dovish monetary commentary by Federal Reserve members delivered on Thursday. Traders are now hoping for aggressive monetary easing from the Federal Reserve at the end of the month.
The Asian benchmark, in Japan, the Nikkei 225, rose 1.85 percent as share of Tokyo electron added over four percent. In Tokyo, the broader Topic index added 1.84 percent.
Across the Korean Strait, the Kospi composite index was up 1.24 percent as shares of blue chip Samsung Electronics rose better than one percent.
In The Down Under, the S&P ASX added 0.71 percent as the mining sub-sector saw sharp gains as the price of gold rose sharply.
In China, on the mainland, the Shanghai composite was up over one percent. The smaller Shenzhen composite added 1.15 percent and the Shenzhen component rose 1.16 percent.
Shares in Hong Kong gained 1.19 percent by the afternoon.
Asian Traders Digest Dovish Federal Reserve Comments
Traders are now looking for a more aggressive rate cut instead of the expected 25 basis point rate cut markets are currently pricing in.
New York Fed President John Williams, at a banking conference, spoke in favor for preemptive measures before any problems emerge with the economy. He feels that the Fed should having to deal with low inflation and low rates. Williams said when rates and inflation are low, the Fed cannot afford to keep their “powder dry” and wait for “problems to materialize.”
After he shocked the markets, the Federal Reserve was quick to clarify that his speech was not about policy but academic in nature. Traders still took his comments, along with comments made by Fed vice Chair Richard Clarida as a dovish signal from the U.S. central bank.
