Asian shares mostly rise cheered by Wall Street finish

TOKYO / WAM

Asian shares mostly rose Thursday after a firm finish on Wall Street, as expectations remained solid for U.S. interest rate cuts this year, Associated Press (AP) reported. Japan’s benchmark Nikkei 225 rose 0.8 percent to 39,773.14. Sydney’s S&P/ASX 200 rose 0.5 percent to 7,817.30. South Korea’s Kospi added 1.3 percent to 2,742.00. Analysts say Taiwan Semiconductor Manufacturing Co’s (TSMC) facilities may get quicker-than-expected relief — easing concerns about production halts — after a powerful earthquake struck Wednesday, killing at least nine people. Trading remains closed in Taiwan on Friday after being closed Thursday for national holidays.
“Market participants took comfort in the weaker-than-expected U.S. services purchasing managers index overnight, which offset the surprise rebound in manufacturing activities earlier in the week and suggest that overall demand may still remain tame for the Federal Reserve’s inflation fight,” said Yeap Jun Rong, market analyst at IG.
On Wall Street, the S&P 500 inched up by 5.68 points, or 0.1 percent, to 5,211.49. The Dow Jones Industrial Average slipped 43.10, or 0.1 percent, to 39,127.14, and the Nasdaq composite added 37.01, or 0.2 percent, to 16,277.46.
Stocks have broadly slowed their roll since screaming 26 percent higher from November through March. Worries are rising that a remarkably resilient U.S. economy could prevent the Federal Reserve from delivering as many cuts to interest rates this year as earlier hoped. Critics have also been saying a pullback is overdue as stock prices have grown expensive by several measures.
The Fed has indicated it may still cut its main interest rate three times this year, which would relieve pressure on the economy. But Fed officials say they will do so only if more evidence arrives to show inflation is heading down toward their goal of 2 percent.
A more comprehensive report on the job market for March will arrive from the U.S. government on Friday, and it will likely be the week’s headline economic data. Traders have already drastically reduced their expectations for how many times the Federal Reserve will cut interest rates this year, halving them from a forecast of six at the start of the year. That has them on the same page with Fed officials generally. Some investors, though, are preparing for two or even zero cuts this year because the Fed may not want to begin lowering rates too close to November’s election out of fear of appearing political.
In the bond market, Treasury yields fell. The 10-year yield slipped to 4.34 percent from 4.36 percent late Tuesday. The two-year yield, which more closely tracks with expectations for Fed action, fell to 4.67 percent from 4.70 percent. In energy trading, benchmark U.S. crude rose 4 cents to US$85.47 a barrel. Brent crude, the international standard, gained 7 cents to US$89.42 a barrel.
In currency trading, the U.S. dollar edged up to 151.70 Japanese yen from 151.65 yen. The euro cost US$1.0842, little changed from US$1.0837.