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Global Shares Mixed on Steady Fed Rates01/29 04:38
Global shares were mixed Thursday as a wait-and-see attitude dominated in
regional markets following the Federal Reserve's decision to keep its key
interest rate unchanged.
TOKYO (AP) -- Global shares were mixed Thursday as a wait-and-see attitude
dominated in regional markets following the Federal Reserve's decision to keep
its key interest rate unchanged.
That was expected, and Fed Chair Jerome Powell said interest rates look to
be "in a good place" for now.
Gold jumped another 2%, trading at $5,543 per ounce. The dollar weakened
against the Japanese yen and oil prices rose.
France's CAC 40 rose nearly 1.0% in early trading to 8,142.92, while
Germany's DAX shed 0.3% to 24,748.68. Britain's FTSE 100 added 0.6% to
10,217.86. U.S. shares were set to drift higher with Dow futures up nearly 0.1%
to 49,207.00. S&P 500 futures edged up 0.3% to 7,026.00.
In Asia, gains for some technology companies reporting strong earnings
failed to give shares in Tokyo much of a lift as the Nikkei 225 rose less than
0.1% to 53,375.60.
Computer chip testing equipment maker Advantest surged 5.2% after it
reported stronger than anticipated earnings. Some tech company shares, like
Panasonic Holdings, fell, while others rose, like chips maker Kioxia Holdings
Corp. and Sony Corp.
Earnings season is getting into full gear, with major Japanese companies
like Toyota Motor Corp., Sony Corp. and Nintendo Co. due to report their
earnings next week.
Elsewhere in Asia, South Korea's Kospi surged 1.0% to 5,221.25, hitting a
fresh record as computer chip maker SK Hynix picked up 2.4% on a strong
earnings report.
Hong Kong's Hang Seng added 0.5% to 27,968.09, while the Shanghai Composite
index gained 0.2% to 4,157.98.
Australia's S&P/ASX 200 shed nearly 0.1% to 8,927.50.
In Jakarta, the JSX sank 1.9%, following a decline after the MSCI, a U.S.
provider of global equity, fixed income and real estate indices, warned about
market risks in Indonesia.
In the foreign-exchange market, the U.S. dollar stabilized after Treasury
Secretary Scott Bessent said in an interview on CNBC that the U.S. government
is not intervening in the currency market and continues to want a "strong
dollar."
The dollar fell to 153.26 Japanese yen from 153.42 yen. The euro cost
$1.1977, up from $1.1955.
"From Washington's side, a slightly firmer yen is convenient for domestic
manufacturing concerns. From Tokyo's side, even symbolic Fed acknowledgement
buys time and credibility," Stephen Innes, managing partner at SPI Asset
Management, said in a commentary.
The Fed cut rates several times last year to try to shore up the job market,
but inflation remains stubbornly above its 2% target. Lower interest rates
could worsen inflation while giving the economy a boost. Lower rates could also
further undercut the U.S. dollar's value, which would help U.S. exporters.
Trump has been pushing aggressively for lower rates.
In energy trading, benchmark U.S. crude gained 92 cents to $64.13 a barrel.
Brent crude, the international standard, rose 88 cents to $69.28 a barrel.
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