Asia Stocks Rise as Fed Boosts Confidence With Growth OutlookBy
A benchmark of Asian stocks rose after the Federal Reserve raised its outlook for U.S growth while keeping its forecast for three interest rate increases in 2018.
The MSCI Asia Pacific Index increased 0.1 percent to 171.01 as of 4:54 p.m. in Hong Kong, paring an earlier gain of as much as 0.5 percent as banks fell, offsetting gains in healthcare and materials stocks. Japan’s Topix Index slid, dragged down by banks, after the Fed yesterday followed through on an expected increase in borrowing costs. China equities fell as the central bank unexpectedly decided to follow U.S. policy makers in raising rates.
The Fed’s forecast is “a reaffirmation of the confidence in the strength in the U.S. economy that it can absorb three rate increases next year,” said Julian Tarrobago, head of equities at ATR Asset Management Inc., which manages 111 billion pesos ($2.21 billion) of assets. “This is good for the world as the U.S. is one the biggest consumer markets.”
The Philippine Stock Exchange Index jumped 1.2 percent to a five-week high after Congress approved President Rodrigo Duterte’s tax reform aimed at cutting income taxes while raising funds for his infrastructure program. Overseas investors bought net $21.1 million of shares, halting the longest streak of outflow in almost a year. Indonesia’s benchmark index rallied as much as 1 percent to another record high ahead of a rate decision from the nation’s central bank.
- Topix -0.2%, Nikkei 225 -0.3%
- Hang Seng Index -0.2%, Hang Seng China Enterprises Index +0.1%, Shanghai Composite Index -0.3%, Shenzhen Composite little changed
- Taiex +0.6%
- Foreigners Net Buy Stocks First Time in 3 Weeks: Inside Taiwan
- Kospi -0.5%, Kospi 200 -0.4%
- S&P/ASX 200 -0.2%; New Zealand’s S&P/NZX 50 +0.5% to record close
- Whitehaven Rises to Highest in Over a Year; Analyst Upgrades
- Straits Times Index -0.8%; Malaysia’s KLCI +1.2%, Jakarta Composite Index +1%, Thailand’s SET Index +0.2%; Philippine Stock Exchange Index +1.2%; Vietnam’s VN-Index +1.2%
- Philippine Stocks May Rise 15% in 18 Months on Tax Approval: ATR
- GT Capital Rises to 8-Week High on Lower-Than-Expected Car Tax
- Singapore Stocks Slump as Straits Times Index Pares 4-Day Gain
- Summarecon Agung Jumps After Report on Record Marketing Sales
- Indocement Leads Cement Stocks Rally as BCA Sees Better Outlook
- India’s Sensex little changed, Nifty 50 +0.1%