An encouraging uptick in non-mining investment and better than expected economic growth of 3.3 percent in the year to June, however, could mean the Reserve Bank of Australia will be in no rush to lower rates as it adopts a flexible approach to attain its inflation target of 2 percent to 3 percent.
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Australian shares .AXJO rose 0.8 percent, while South Korea’s KOSPI .KS11 advanced 1.1 percent.
Energy shares were also in demand after oil prices also rose on a weaker dollar, extending gains from the previous session when a surprise third consecutive weekly USA crude inventory draw tightened supply. Japan’s benchmark Nikkei 225 index jumped 1.9 percent on Wednesday on the news.
LLOYD’S OF LONDON – The insurance market posted a 22 percent rise in pre-tax profits to £1.46billion. Japanese markets were closed for a holiday.
For the first time in almost two years and for the first time since Yellen became Fed chair in February 2015, there were three dissents to the Fed’s statement. Analysts expected the number to tick up to 261,000.
In early trading, benchmark 10-year Treasury notes rose 12/32 in price for a yield of 1.627%, down 4 basis points from Wednesday.
The dollar fell broadly Thursday as investors remained skeptical that the Federal Reserve will raise interest rates at all this year. Market pricing for a December move rose only a fraction to 59.3 percent 0#FF: , from 59.2 percent, according to CME Group’s FedWatch tool.
Nobody on Wall Street expects the Fed to hike at its November meeting, as it is too close to the presidential election.
US jobless claims fell to their lowest level since July in the past week, according to the Labor Department. “Gold should also be impacted by the reported divisions at the FOMC”.
In currencies, the WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, was last down 0.2%, after falling 0.7% on Wednesday following the Fed’s decision not to raise interest rates.
The Reserve Bank of New Zealand kept its official cash rate unchanged at 2% on Thursday, but left the door open for further easing in the future, citing a relatively stronger kiwi dollar and inflation hovering below the central bank’s target. Even then its shares are up 1.2p at 199p as financial firms join in the Fed-inspired gains.
Japan’s central bank made some technical changes that give it more influence over long-term interest rates. The technology giant’s stock rose 95 cents, or 1.7 percent, to $57.76.
PLDT was also up by 2 percent along with GT Capital and Megaworld. On the Nasdaq, 1,804 issues rose and 429 fell.
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The euro gained 0.4 percent to $1.1229, its highest since Friday and taking it firmly back into the middle of a $1.09-$1.15 range it has held since March.
