Nikkei, Topix and Co. Asian stock markets followed Wall Street into positive territory after Fed decision

Nikkei, Topix and Co. Asian stock markets followed Wall Street into positive territory after Fed decision

Nikkei, Topix and Co. Asian stock markets followed Wall Street into positive territory after Fed decision
The Tokyo stock exchange was up on Thursday.  Source: AP

The tightening of monetary policy announced by the US Federal Reserve on Thursday gave momentum to the stock exchanges in Asia. The US monetary authorities will in future reduce their purchases of securities twice as fast as before and are aiming for three interest rate hikes in 2022.

“The economy no longer needs increasing political support,” said the chairman at a press conference after the end of the two-day session. “Powell didn’t think the Fed was behind the curve on inflation control,” wrote Tapas Strickland, economics director at the National Australia Bank (NAB). “Risk sentiment remains positive.”

The Nikkei index, which comprises 225 stocks, was 1.8 percent higher at 28,968 points. The broader Topix index rose 1.2 percent to 2007 points.

The Shanghai stock exchange was up 0.3 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.1 percent.

In Asian currency trading, the dollar gained 0.1 percent to 114.12 yen and stagnated at 6.3673 yuan. Compared to the Swiss currency, it was hardly changed at CHF 0.9250. At the same time, the euro remained almost unchanged at 1.1286 dollars and was almost unchanged at 1.0441 francs. Sterling lost 0.1 percent to $1.3255.

There is also positive economic data from Japan: The country’s exports picked up speed in November due to increased demand for cars. Exports rose 20.5 percent year-on-year in the past month, data from the Treasury Department showed on Thursday. They remained slightly behind the average market forecast of a Reuters survey, which assumed 21.2 percent. It was the ninth straight month of growth. Exports increased by 9.4 percent in October.

The data shows that Japan is on track to overcome supply shortages from automakers and other key industries. Auto exports grew 4.1 percent year-on-year, marking the industry’s first increase in three months.