Equity markets in the Asia-Pacific region are rising in trading Thursday, following a significant rise in U.S. stock indices.
Investors are assessing the speech of Federal Reserve (Fed) Chairman Jerome Powell.
He said the U.S. central bank could slow the pace of interest rate hikes following its December meeting. “The time to moderate the pace of rate hikes may come as early as the next meeting,” Powell said during a speech at the Brookings Institution on Wednesday.
In doing so, the Fed chief tried to balance those words with “hawkish” signals, Market Watch notes. Among other things, he said that the final peak in rates should be higher than might have been expected months ago.
In addition, Powell made it clear that the question of a rate cut is irrelevant at this point. “History strongly cautions us against premature policy easing,” he said.
The news from China also had a positive effect on bidders’ sentiment.
Authorities in Guangzhou have lifted restrictions imposed in several areas to combat the spread of the coronavirus. Strict lockdown was in force for several weeks in the city with a population of more than 18 million people, businesses were closed and strict quarantine measures were in place for those who were sick and in contact with them.
China’s Shanghai Composite index was up 0.7 percent by 7:26 a.m. Ksk, while Hong Kong’s Hang Seng was up 1.45 percent.
Shares in Shenzhou International Group, which makes and sells knitwear, rose 9 percent, the jewelry chain Chow Tai Fook Jewellery Group Ltd. – by 6.6% and the Internet company Baidu by 5%.
In addition, retailers Alibaba and JD.com Inc. – rose by 4.3% and 1.5%, respectively, telecoms China Unicom and China Telecom – by 4.6% and 2.2%.
Japan’s Nikkei 225 was up 1.1% by 8:21 a.m. Ksk.
Among the index components, pharmaceutical Eisai (+4.7%), chipmaker Advantest (+4.3%) and cosmetics maker Shiseido (+4.1%) were the biggest gainers.
Moreover, SoftBank Group (+1.8%), Sony (+0.9%) and Fast Retailing (+2.8%) gained their share prices.
South Korea’s Kospi Index was up 0.3% by 8:21 a.m. Ksk.
One of the world’s biggest chip and electronics maker Samsung Electronics Co. gained 0.5% and automaker Hyundai Motor rose 0.9%.
South Korea’s economy grew 3.1 percent in the third quarter of 2022 compared with the same period last year, final data from the Bank of Korea showed. Compared to the second quarter, GDP increased by 0.3%, which was the smallest rate of increase for the year.
The dynamics of both indicators matched both the previously announced data and analysts’ forecasts.
Australia’s S&P/ASX 200 index added nearly 1% in trading Thursday.
Share prices of the world’s largest mining companies BHP and Rio Tinto rose by 2.1% and 3.3%, respectively.
