Asian stocks rise after Fed leaves interest rates unchanged
South Korean shares led Asian shares’ gains on Thursday as markets reacted to the U.S. Federal Reserve’s decision the previous day to keep interest rates unchanged.
The Kospi rose 1.8 percent in afternoon trading, Hong Kong’s Hang Seng index rose 0.9 percent and Japan’s Topix rose 0.5 percent. China’s CSI 300 fell 0.2 percent.
The Fed left its key interest rate unchanged between 5.25 and 5.5 percent on Wednesday. Chairman Jay Powell said the central bank could afford to be “cautious” in future decisions.
Oil prices also rose, with international benchmark Brent crude rising 0.9 percent to trade at $85.38 a barrel.
What there is to see in Europe today
British interest rates: The Bank of England announces its latest interest rate decision. More than 80 percent of analysts polled by Portal expect the central bank to keep interest rates at 5.25 percent for the second time as inflation pressures remain strong. The overall rate of consumer price growth was 6.7 percent in October, with service sector inflation accelerating to 6.9 percent from 6.8 percent.
Rishi Sunak welcomes US Vice President Kamala Harris to 10 Downing Street on Wednesday before both attend the AI summit at Bletchley Park © APAI Summit: British Prime Minister Rishi Sunak attends the second day of the AI Security Summit at Bletchley Park.
BT group: The U.K.-based telecommunications company, which this month announced it would begin selling kitchen appliances such as smart refrigerators, kettles and coffee makers, will report its first-half results. Investors will be watching for signs of progress on its cost-cutting plan, which includes cutting staff by up to 42 percent by the end of the decade.
Other Income: Italian carmaker Ferrari, German fashion brand Hugo Boss and Anglo-Dutch oil company Shell will report third-quarter results.
Joe Biden calls for a temporary “pause” in the fight to release hostages in the Gaza Strip
Joe Biden has called for a “pause” in fighting between Israel and Hamas to help release hostages held in Gaza.
The US president was interrupted at an event on Wednesday by an audience member who urged him to call for a ceasefire in the Middle East conflict. “I think we need a break,” Biden said. “A break means giving time to get the prisoners out.”
Biden’s comments do not represent a call for a full ceasefire, which the White House has opposed since the war began. However, U.S. officials have said they would consider supporting a temporary pause in hostilities if it were limited to supporting humanitarian efforts.
Japan’s prime minister unveils $113 billion stimulus package
Japanese Prime Minister Fumio Kishida © BloombergJapan’s prime minister has announced a stimulus package worth more than 17 trillion yen ($113 billion) to address higher living costs and declining popularity.
Fumio Kishida said Thursday that about ¥13 trillion of the package will be funded from a supplementary budget for the remainder of the current fiscal year through March 2024.
The package focuses on temporary cuts in income and housing taxes worth an estimated 5 trillion yen, cash payments to low-income households and an expansion of subsidies to offset rising oil and electricity costs, as well as support for companies to raise wages.
Asian stocks follow US rise after Fed leaves interest rates unchanged
Asian stocks rose on Thursday as Wall Street shares rose after the US Federal Reserve decided to keep interest rates unchanged and markets became more confident that the central bank had completed its tightening policy for this year.
Hong Kong’s Hang Seng index rose 1.2 percent, China’s CSI 300 rose 0.3 percent, Japan’s Topix rose 0.8 percent and South Korea’s Kospi rose 2.1 percent.
In the US, the S&P 500 rose 1.1 percent and the Nasdaq Composite rose 1.6 percent on Wednesday after the Federal Reserve kept its key interest rate at a 22-year high between 5.25 and 5.5 percent had.
Australian pension fund votes against improved Brookfield-led bid for Origin
Cylinders of compressed liquid gas at an Origin processing plant in northeastern Australia © AFP/Getty ImagesAustralia’s largest pension fund has said it will vote against a Brookfield-led consortium’s best and final offer for energy company Origin, valued at nearly A$20 billion ($12.9 billion).
Bidders increased their offer by A$1.2 billion on Thursday to reflect the increased value of the Australian business since the bid was first made a year ago.
AustralianSuper, which holds a nearly 14 percent stake, said this week it would vote against the initial offer. On Thursday, the company said it would also vote against the improved offer, which it said was still “significantly below” its assessment of Origin’s long-term value.
Origin shares fell 5 percent on Thursday, below the offer price.
What to see in Asia today
Monetary policy: Bank Negara Malaysia, the country’s central bank, will make a rate decision.
Merits: Mitsubishi Corp, the Japanese industrial group, reports its second quarter results.
Markets: Japanese stocks rose and Hong Kong futures showed a rise on Thursday morning. In the US, the S&P 500 rose 1.1 percent and the Nasdaq Composite rose 1.6 percent on Wednesday after the Federal Reserve kept its key interest rate at a 22-year high between 5.25 and 5.5 percent had.
Canada limits immigration destination as commitment weakens
The average house price in major cities like Toronto (pictured) and Vancouver is more than C$1.1 million © APOttawa has capped its immigration targets as concerns about housing affordability grow in the country and a recent report suggests some newcomers are disillusioned about the cost of living.
The federal government said on Wednesday it plans to admit 485,000 permanent residents next year and 500,000 in 2025, stabilizing at that level in 2026.
Public support for immigration in Canada has declined as concerns about housing affordability have increased. The average home price in major cities like Toronto and Vancouver is more than 1.1 million Canadian dollars (US$794,000).
A report released this week by the Institute for Canadian Citizenship said the number of migrants ultimately leaving Canada has increased.
Ex-Goldman banker sentenced to three years in prison for insider trading with squash partner
A former Goldman Sachs investment banker has been sentenced to three years in prison in the US for insider trading and obstruction of justice. He was accused of passing on confidential market information to his squash partner.
Brijesh Goel was accused of working with Akshay Niranjan, a New York-based trader at Barclays, to trade on information Goel gleaned from his work as vice president of Goldman’s financing group within the investment bank. He was convicted earlier this year after a seven-day trial.
Read more here.
Donald Trump Jr. distances himself from the Trump Organization’s financial reports
Donald Trump Jr. on Wednesday distanced himself from the financial reports that were at the center of the civil fraud lawsuit against his family, saying he was relying on outside accountants and the Trump Organization’s former chief financial officer to prepare them.
Donald Trump’s eldest son took the witness stand in a trial arising from a civil lawsuit brought by New York Attorney General Letitia James against the Trump Organization and members of the Trump family. He will be followed next week by his brother Eric, his father and his sister Ivanka.
After their father was sworn in as president in January 2017, Donald Jr. and Eric took on expanded roles in the family business, the Trump Organization.
Read more about Donald Trump Jr here.
DoorDash shares rise after releasing strong outlook
DoorDash shares rose more than 7 percent in extended trading on Wednesday after the food delivery company raised its outlook and its total orders hit a record high in the latest quarter.
The company’s total orders rose 24 percent to 543 million, resulting in revenue of $2.16 billion, above analysts’ estimates. Net loss narrowed to 13 cents per share, compared with 77 cents per share last year.
DoorDash forecast adjusted profit of between $320 million and $380 million for the current quarter, well above the consensus expectation of $253.3 million.
“Our outlook also assumes significant ongoing investments in new categories and international markets,” DoorDash said.