Asian stocks gain as global markets await Fed chair speech
TOKYO (AP) — Asian shares gained Thursday as Wall Street and global markets wait for a highly anticipated speech from the U.S. Federal Reserve chair about interest rates at the end of the week.
Benchmarks rose in Japan, Australia, South Korea and China. Trading was temporarily delayed in Hong Kong for a storm.
Market watchers say share prices are likely to sway for some time, regardless of whether the focus is on controlling inflation or recession risks. In Asia, a wait-and-see mood has set in during recent sessions, as markets wait for signs from the Fed.
“Market participants may want to see a more consistent recovery as a gauge of policy success before confidence is lifted,” said Yeap Jun Rong, market strategist at IG in Singapore.
Chinese shares have declined this week, amid recent policy rate cuts from the People’s Bank of China, which also announced policies to try to stimulate the economy.
The Bank of Korea raised its key policy rate by 0.25% to 2.5% in an effort to fight inflation, even as signs of inflationary pressures appeared to be gradually easing.
“Currently available information suggests that global economic downside risks have increased, affected by the prolonged Ukraine crisis and significant policy rate hikes in major advanced countries, while inflation has remained high,” the bank said in a statement.
A recent surge in fresh food prices remains a risk, according to market analysts. The Bank of Korea said the nation's GDP, or gross domestic product — the sum of the value of a nation’s products and services — is projected to grow by 2.6% in 2022 and 2.1% in 2023.
South Korea's economy has recovered rapidly as consumption rebounded and restrictions to curb COVID-19 infections eased, but growth is likely to weaken as exports decline amid a global...
