TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Asian markets get off to largely positive start of week
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Traders look at their computer screens while monitoring market movements in Jakarta on March 16, 2023. (AFP/Bay Ismoyo)
A
sian markets mostly rose Monday following last week's strong performance, with traders focused on a closely followed meeting of central bank chiefs where the Federal Reserve's Jerome Powell is due to deliver a key speech.
Investors appear to have got over the turmoil that beset trading floors earlier in the month as a string of data suggested that worries of a US recession had been overdone.
Powell's talk at the annual Jackson Hole symposium in Wyoming -- which also gathers together financial leaders and policymakers -- will be pored over, with hopes that he will flag an interest rate cut when Fed officials meet next month.
"Investors and analysts alike will be paying close attention to any signals from Fed officials about the future direction of US interest rates," said Luca Santos, currency analyst at ACY Securities.
"There's growing speculation that [...] Powell might hint at the possibility of starting rate cuts as early as September. But the size of the cut is still up in the air.
"A modest 25 basis points reduction seems likely, but a larger 50-basis-point cut would need stronger evidence of a weakening US job market."
All three main indexes on Wall Street rose Friday, leaving them back near the record highs touched before their August 5 rout as investors grow confident the US economy will avoid recession as the Fed cuts rates.
Most Asian markets picked up the baton Monday.
Hong Kong piled on more than one percent, while there were also gains in Shanghai, Sydney, Taipei, Manila and Jakarta, though Seoul, Singapore and Wellington dipped. Tokyo was flat.
Gold held above US$2,500 after breaking the barrier for the first time ever on Friday, fueled by expectations for Fed cuts, which makes the precious metal more attractive to investors.
And oil prices were barely moved after last week's losses, which came on the back of demand worries as China's economy struggles to recover.
Investors are also keeping tabs on talks to mediate a ceasefire between Israel and Hamas in Gaza amid fears of a wider war in the crude-rich Middle East.
Major oil producer Iran has threatened to retaliate against Israel for last month's killing of Hamas political leader Ismail Haniyeh in Tehran, which has been widely blamed on Israel.
US Secretary of State Antony Blinken was due to meet Prime Minister Benjamin Netanyahu and other Israeli leaders Monday to try to unblock the process for an end to hostilities.
