GLOBAL MARKETS-Asia shares jump as investors anticipate smaller interest rate rises

By Ankur Banerjee

SINGAPORE, Oct 27 (Reuters) – Asian shares rose on Thursday on growing expectations that the central bank may begin to reduce the pace of interest rate cuts in the coming months, while a rebound in the dollar lifted commodities and make the treasure less.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 1.59% higher and set for a third straight session of gains. The index is down 2% for the month.

Australia’s stock index rose 0.81%, while Japan’s Nikkei opened 0.09% lower.

China’s stock market opened 0.1% higher on Friday, with Hong Kong’s Hang Seng Index up 2.6% at the open.

China’s stock market has had a tumultuous week, led by Monday’s sell-off as investors around the world dumped Chinese assets, on suspicion that members of President Xi Jinping’s new government will put pressure on stocks. in abundance.

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But growing expectations among investors that the Federal Reserve and other central banks could end their aggressive policy stance helped to calm investors. break the dollar convention.

Taylor Nugent, an economist at the National Australia Bank in Sydney, said: “Currencies are falling globally as the first expectation of a central bank shutdown continues.”

Nugent also said that the Bank of Canada on Wednesday announced a slightly lower than expected rate increase of 50 percent, and says that he expects the Fed to start the adjustment with the benchmark rate rising in December.

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US Treasuries fell, helped by a weaker dollar and expectations of the Fed becoming less hawkish.

Meanwhile, financial reports from Facebook parent Meta Platforms Inc on Wednesday and Samsung Electronics Co Ltd raised fears of a collapse while some of Europe’s biggest banks warned of growing risks as assets in abundance is falling.

In financial markets, the euro rose above $1 for the first time in five weeks, rising to $1.00935, as investors await a rate decision from the European Central Bank ( ECB), and the market expects it to raise 75 bp. .

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Sterling was trading at $1.1624, down 0.03% on the day after hitting a session high of $1.1645.

The yen strengthened 0.18% against the greenback at 146.09 per dollar.

The slide in the dollar has helped push gold prices higher, with spot gold hitting a two-week high on Wednesday.

Oil prices continued to rise in early Asian trading on Thursday after rising more than 3% in the previous session.

Brent crude futures rose 25 cents, or 0.3%, to $95.94 a barrel by 0015 GMT. US West Texas Intermediate (WTI) crude rose 19 cents, or 0.2%, to $88.10.

Complaint by Ankur Banerjee; Editing by Simon Cameron-Moore.


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