Source: AFP
Asian markets rose on Thursday as investors weighed the outlook for US interest rates as Federal Reserve officials questioned the need for a cut soon.
Oil rose after the previous day’s losses, fueled by data pointing to weaker demand in the United States and fading fears of a regional war in the Middle East.
Investors fended off a sell-off on Wall Street, where technology companies were hit by concerns that borrowing costs would remain higher than expected.
The comments from Fed officials reinforced the view that steady inflation and a resilient U.S. economy will prevent the bank from easing monetary policy anytime soon.
A rally in global markets, which hit some record highs earlier this month, has given way to concerns that valuations may be overstated, and analysts said the current earnings season is key to sustaining momentum.
![](https://images.yen.com.gh/images/5ebb98db170019fd.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/5ebb98db170019fd.jpg?impolicy=cropped-image&imwidth=256)
Read also
Seoul and Tokyo vow ‘appropriate action’ on weak yen and win
Expectations for rate cuts in 2024 have fallen from six predicted at the start of the year to just two, with some analysts even warning of a possible increase.
Cleveland Fed President Loretta Mester said on Wednesday that she believes borrowing costs are at the right level for now and there is no rush to cut them.
And while he saw inflation coming down, he said: “I think we need to watch and gather more information before we take action.”
Meanwhile, Gov. Michelle Bowman added that she believes “time will tell if it’s restrictive enough.”
The remarks came a day after Fed chief Jerome Powell said borrowing costs could remain higher for longer after three straight months of higher-than-forecast inflation and job creation.
![](https://images.yen.com.gh/images/dec9f1db6bc98760.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/dec9f1db6bc98760.jpg?impolicy=cropped-image&imwidth=256)
Read also
Stocks move after latest sell-off as Fed and Middle East curb sentiment
“The U.S. central bank remains on track to cut interest rates twice this year, likely starting at its September meeting,” said Solita Marcelli, at UBS Group AG.
In early trade, Hong Kong, Tokyo, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta rose.
Oil rallied, having fallen more than 3 percent on Wednesday after data showed a drop in U.S. stockpile forecasts that raised questions about demand in the world’s top economy.
Relief that Israel averted any retaliation for Iran’s weekend missile attack — allaying fears of a clash between the Middle East foes — also weighed on prices.
Currency markets are also being watched closely after the dollar pushed uncomfortably higher against its peers.
The yen and profit are in particular focus after US Treasury Secretary Janet Yellen joined her Japanese and South Korean counterparts in saying they were watching the moves.
![](https://images.yen.com.gh/images/293722be635eb189.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/293722be635eb189.jpg?impolicy=cropped-image&imwidth=256)
Read also
Stocks sink, oil rallies on Iran-Israel conflict fears
The statement came after South Korea’s Choi Sang-mok and Japan’s Shunichi Suzuki shared “serious concerns” over recent weakness in their currencies and agreed to take “appropriate actions” to address extreme volatility.
Analysts said the statement with Yellen suggests Washington will not push back against the countries’ intervention.
The yen has lost nearly nine percent this year and the won about seven percent.
However, Yujiro Goto, at Nomura Securities, warned that such a move would not change the trend in the market if the fundamentals do not change.
Keys around 02:30 GMT
Tokyo – Nikkei 225: UP 0.3 percent at 38,090.87 (break)
Hong Kong – Hang Seng Index: UP 0.7 percent at 16,369.68
Shanghai – Composite: UP 0.1 percent to 3,075.77
Dollar/yen: DOWN at 154.12 yen from 154.36 yen on Wednesday
EUR/USD: DOWN to $1.0672 from $1.0676
GBP/USD: UP at $1.2461 from $1.2455
Euro/pound: DOWN to 85.66 pence from 85.69 pence
![](https://images.yen.com.gh/images/c49a4872eb61d206.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/c49a4872eb61d206.jpg?impolicy=cropped-image&imwidth=256)
Read also
Stocks hit by Israel-Iran strike, curb hopes stem losses
West Texas Intermediate: UP 0.1% to $82.77 a barrel
North Sea Brent crude: UP 0.2 percent at $87.44 a barrel
New York – Dow: DOWN 0.1 percent at 37,753.31 (close)
London – FTSE 100: UP 0.4 per cent at 7,847.99 (close)
— Bloomberg News contributed to this story —
Source: AFP