HONG KONG
\nAsian markets rallied Thursday and the dollar weakened further after minutes from the Federal Reserve\u2019s latest policy meeting suggested it could slow its pace of rate hikes.
\nThe news provided traders with a cushion against concerns about surging Covid cases in China that have fanned speculation authorities will revert to lockdowns and other economically debilitating measures to fight the outbreak.
\nWednesday\u2019s much-anticipated minutes showed most US central bank chiefs felt smaller increases would \u201clikely soon be appropriate\u201d as the economy shows signs of weakness following almost a year of monetary tightening.
\nBets were growing on officials announcing a 50-basis-point lift at their December gathering, down from four straight 75-point hikes, with officials keeping tabs on economic data.
\nThe latest indicators showed the manufacturing and services sectors continued to contract last month, while jobless claims picked up.
\nThe developments allowed Wall Street traders to head off to their Thanksgiving break with a spring in their step, the S&P 500 ending at a two-month high as they finally see a glimmer of light at the end of the tunnel after a painful year.
\nAnd Asia followed suit, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta all in the red.
\nThe more risk-on environment was also reflected in a further drop in the dollar against its peers, having surged for much of the year as traders bet on ever-higher US interest rates.
\nAsian markets rise on rate hopes but China Covid casts shadow
\n\u201cEquities are revelling in the wake of the\u2026 minutes after the Fed telegraphed a downshift from jumbo to extra-large rate hikes,\u201d said SPI Asset Management\u2019s Stephen Innes.
\n\u201cA commitment to moving toward restrictive monetary policy remains intact, but the (policy board) is ready to slow the path toward that destination.\u201d
\nHe added that a less aggressive Fed \u201cshould pave the runway for take-off in Asia, fuelled by expectations of China\u2019s reopening by March next year\u201d.
\nInvestors are keeping a close watch on China after it announced a record number of new Covid cases on Thursday as authorities worked to curb the spread with snap lockdowns, mass testing and travel restrictions.
\nWhile officials are trying more targeted measures to contain the disease, there remains a concern that they will resort to the painful city-wide shutdowns seen in Shanghai earlier this year as part of the country\u2019s zero-Covid strategy, which hammered the economy.
\nHowever, the concern has been tempered somewhat after China signalled fresh support measures aimed at boosting growth, with the State Council saying tools would be used to ensure liquidity in markets.
\nThe comments led to talk of another cut in the amount of cash banks must keep in reserve, freeing them to lend more.
\nKey figures around 0230 GMT
\nTokyo – Nikkei 225: UP 1.2 percent at 28,448.58 (break)
\nHong Kong – Hang Seng Index: UP 0.5 percent at 17,617.28
\nShanghai – Composite: UP 0.3 percent at 3,106.13
\nEuro\/dollar: UP at $1.0424 from $1.0401 on Wednesday
\nDollar\/yen: DOWN at 138.82 yen from 139.52 yen
\nEuro\/pound: UP at 86.23 pence from 86.18 pence
\nWest Texas Intermediate: DOWN 0.2 percent at $77.77 per barrel
\nBrent North Sea crude: DOWN 0.3 percent at $85.14 per barrel
\nNew York – Dow: UP 0.3 percent at 34,194.06 (close)
\nLondon – FTSE 100: UP 0.2 percent at 7,465.24 (close)<\/p>\n","protected":false},"excerpt":{"rendered":"
HONG KONG Asian markets rallied Thursday and the dollar weakened further after minutes from the Federal Reserve\u2019s latest policy meeting suggested it could slow its pace of rate hikes. The news provided traders with a cushion against concerns about surging Covid cases in China that have fanned speculation authorities will revert to lockdowns and other […]<\/p>\n","protected":false},"author":2,"featured_media":297303,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[11555,11541,11556,11554],"class_list":{"0":"post-297290","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-dollar-slips","9":"tag-leadpakistan","10":"tag-softer-rate-hike","11":"tag-stocks-rise"},"yoast_head":"\n