Markets
Thursday, 20 March 2008
World stock markets cheer US rate cut
TOKYO, Mar 19 (AFP): Asian stocks soared Wednesday after a big bounce on Wall Street as the US Federal Reserve slashed interest rates in a bid to contain a spiralling financial crisis and risk of recession.
Tokyo closed up 2.5 percent, Seoul rose 2.1 percent, Shanghai added 2.5 percent, Sydney surged 4.0 percent as Hong Kong gained 2.9 percent in late trade.
The Hang Seng jumped 2.3 per cent to 21,866.94, while the index of mainland shares traded in Hong Kong rallied 3.3 per cent to 11,438.75.
Shanghai shares managed a break in their recent losing trend. The Shanghai Composite advanced 2.5 per cent to 3,761.605 as banks rose, with ICBC gaining 3.5 per cent to Rmb5.65.
Taiwan was up 1.5 per cent, New Zealand up 1.4 per cent, and Malaysia 0.6 per cent higher. However, Singapore was unable to hold gains and closed 0.1 per cent lower after earlier adding 2.1 per cent. Indonesia also finished in the red.
Dollar falls
LONDON (Bloomberg): The dollar fell against the euro, erasing most of yesterday's gains, on speculation the worst U.S. housing slump in a quarter of a century will swell credit-market losses.
The currency weakened against the Japanese yen and the Swiss franc after Bank of America Corp. predicted the Federal Reserve will lower its target rate by another 75 basis points this year following a reduction to 2.25 percent yesterday. Reports this week on U.S. mortgage demand and manufacturing will probably show the economy is slowing.
The U.S. currency fell to $1.5757 per euro at 9:59 a.m. in London, from $1.5625 yesterday, when it rose 0.7 percent, the most since Feb. 7. The dollar declined to 98.23 yen, from 99.85 yesterday, when it surged 2.7 percent, the biggest gain since January 1999. The yen traded at 154.76 per euro, compared with 155.95 yesterday.
Oil slips below $107
LONDON (Reuters): Oil fell more than $2 on Wednesday as forecast increases in fuel inventories in the United States overshadowed a cut in interest rates by the world's biggest oil consumer to fend off a recession.
The U.S. crude contract for April delivery , which expires later on Wednesday, fell $2.59 to $106.83 a barrel by 1258 GMT. The May contract was trading more actively at $105.79.
U.S. crude, which hit a record high of $111.80 on Monday, has averaged $96.98 so far this year, compared $72.30 last year.
TOKYO, Mar 19 (AFP): Asian stocks soared Wednesday after a big bounce on Wall Street as the US Federal Reserve slashed interest rates in a bid to contain a spiralling financial crisis and risk of recession.
Tokyo closed up 2.5 percent, Seoul rose 2.1 percent, Shanghai added 2.5 percent, Sydney surged 4.0 percent as Hong Kong gained 2.9 percent in late trade.
The Hang Seng jumped 2.3 per cent to 21,866.94, while the index of mainland shares traded in Hong Kong rallied 3.3 per cent to 11,438.75.
Shanghai shares managed a break in their recent losing trend. The Shanghai Composite advanced 2.5 per cent to 3,761.605 as banks rose, with ICBC gaining 3.5 per cent to Rmb5.65.
Taiwan was up 1.5 per cent, New Zealand up 1.4 per cent, and Malaysia 0.6 per cent higher. However, Singapore was unable to hold gains and closed 0.1 per cent lower after earlier adding 2.1 per cent. Indonesia also finished in the red.
Dollar falls
LONDON (Bloomberg): The dollar fell against the euro, erasing most of yesterday's gains, on speculation the worst U.S. housing slump in a quarter of a century will swell credit-market losses.
The currency weakened against the Japanese yen and the Swiss franc after Bank of America Corp. predicted the Federal Reserve will lower its target rate by another 75 basis points this year following a reduction to 2.25 percent yesterday. Reports this week on U.S. mortgage demand and manufacturing will probably show the economy is slowing.
The U.S. currency fell to $1.5757 per euro at 9:59 a.m. in London, from $1.5625 yesterday, when it rose 0.7 percent, the most since Feb. 7. The dollar declined to 98.23 yen, from 99.85 yesterday, when it surged 2.7 percent, the biggest gain since January 1999. The yen traded at 154.76 per euro, compared with 155.95 yesterday.
Oil slips below $107
LONDON (Reuters): Oil fell more than $2 on Wednesday as forecast increases in fuel inventories in the United States overshadowed a cut in interest rates by the world's biggest oil consumer to fend off a recession.
The U.S. crude contract for April delivery , which expires later on Wednesday, fell $2.59 to $106.83 a barrel by 1258 GMT. The May contract was trading more actively at $105.79.
U.S. crude, which hit a record high of $111.80 on Monday, has averaged $96.98 so far this year, compared $72.30 last year.