Iftar Timings Mar 28 - Ramazan 17

Lahore
LHR
06:20 PM
Karachi
KHI
06:46 PM
Islamabad
ISB
06:26 PM
Peshawar
PWR
06:30 PM
Quetta
QTA
06:49 PM

News

Markets mostly up in holiday-thinned Asia trade, eyes on Fed

June 14, 2021 01:30 PM


Asian markets mostly rose Monday during holiday-hit trade, with investors looking forward to the Federal Reserve's next meeting this week hoping for fresh clues about monetary policy in light of the US economy's blistering recovery.

Another record close for the S&P 500 on Wall Street on Friday provided a healthy lead for the region, though with holidays in Hong Kong, China and Australia, business was light.

Confidence among investors remains high as vaccine rollouts, the easing of containment measures, central bank largesse and government stimulus provide support, with observers forecasting a rally that began in April 2020 will continue into next year.

US data showing inflation far higher than expected last month was taken in stride as markets appear to have accepted Fed insistence that the spike will be temporary and their ultra-loose monetary policies -- including record low interest rates -- will be maintained for the foreseeable future.

There had been a worry that soaring prices would force the bank to taper its bond-buying scheme earlier than first thought.

Still, this week's meeting will be closely followed for an idea about its plans.

Mansoor Mohi-uddin, chief economist at the Bank of Singapore, said it is not expected to announce any change at the end of the gathering Wednesday, but it is "likely to start discussing when it will begin slowing its quantitative easing, given the US economy's strong rebound from the pandemic".

"But its taper talk will last many months with the Fed stressing that it needs to see 'substantial further progress' towards meeting its goals of maximum employment and stable inflation before it will slow its asset purchases.

"We expect the Fed will wait until as late as December before announcing it will start tapering in early 2022."

Tokyo stocks ended 0.7  percent higher, while there were also gains in Seoul, Wellington, Manila, Bangkok and Jakarta, but Singapore and Mumbai fell.

Oil prices extended Friday's gains on demand optimism as the global recovery progresses, with WTI at a near three-year high and Brent around levels not seen since mid-2019.

Bitcoin surged to within touching distance of $40,000 for the first time in more than two weeks after Elon Musk said at the weekend that Tesla would accept payments in the unit again when it is mined using cleaner energy. It was at $39,500 in afternoon Asia trade.

"When there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions," the billionaire tweeted Sunday.

The electric car maker said in February that customers could use cryptocurrency, sending bitcoin surging, before Musk changed his mind citing environmental concerns.

Bitcoins are produced by powerful computers that have to solve equations and consume huge amounts of electricity in the process.



Most Read

  1. Aitchison College principal resigns over differences with Punjab governor Aitchison College principal resigns over differences with Punjab governor
  2. Aitchison College students, parents stage protest against principal’s resignation Aitchison College students, parents stage protest against principal’s resignation
  3. Tribal firefight in Gotki, Motorways section shut down Tribal firefight in Gotki, Motorways section shut down
  4. Five Chinese among six killed in Shangla suicide bombing Five Chinese among six killed in Shangla suicide bombing
  5. Transferred: Lawman bears the brunt of flagging down lawmaker Transferred: Lawman bears the brunt of flagging down lawmaker
  6. Maaz Safder regrets 4-year relationship with wife Saba Maaz Safder regrets 4-year relationship with wife Saba

Opinion

  1. IMEC to sabotage CPEC
    IMEC to sabotage CPEC

    By Dr Asif Channer

  2. 1947 TO FORM 47
    1947 TO FORM 47

    By Dr Asif Channer

  3. Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....
    Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....

    By Ali Ramay

  4. Global race: China will reduce its unnecessary expenses
    Global race: China will reduce its unnecessary expenses

    By Ali Ramay

  5. Channer Pir: The Great Saint of Cholistan
    Channer Pir: The Great Saint of Cholistan

    By Dr Asif Channer

  6. Literate the Religious Illiterate
    Literate the Religious Illiterate

    By Dr Asif Channer