Asian stocks jump as Fed hints at strong rate cut

Friday, 19. July 2019 08:32

Investors were hungry for risk, buying equities on Friday toward the end of the session in Asia as focus was taken away from the trade war between the United States and China. The Federal Reserve Bank of New York walked back remarks by its President John Williams, who earlier indicated the natural interest rate could be in decline and that "swift action" is warranted in case of "adverse economic conditions" where borrowing costs must be kept "lower for longer." His view is the result of academic research and not monetary policy stance, according to the statement issued after turbulence in the markets.

In other news, Microsoft lifted revenue 12.1% in the past quarter and Japan is preparing to elect half of the members of the parliament's upper chamber, which may affect government policy including the plan for a sales tax hike.

Japan's Nikkei 225 finished 2% higher. The dollar was 0.33% stronger at 8:30 am CET, buying ¥107.653, and just 0.04% to 6.87684 offshore yuan. Gold fell 0.3% to $1,441.7 per ounce after reaching 1,449.15 for the first time since May 2013. The Hang Seng jumped 10.7% in Hong Kong. The Shanghai Composite and the Shenzhen Composite both rallied 0.71% at 8:16 am CET. South Korea's Kospi climbed 1.35%. The Australian S&P/ASX 200 earlier gained 0.77% for the day.

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