Stock market today: Asia follows Wall Street up on hopes Fed will ease off rate hikes
CTV
Asian stock markets followed Wall Street higher Friday ahead of a U.S. jobs update after Federal Reserve officials reignited hopes another interest rate hike might be postponed.
Asian stock markets followed Wall Street higher Friday ahead of a U.S. jobs update after Federal Reserve officials reignited hopes another interest rate hike might be postponed.
Shanghai, Tokyo, Hong Kong and Seoul advanced after U.S. lawmakers approved a deal to avert a government debt default. Oil prices strengthened.
Wall Street's benchmark S&P 500 index rallied 1% on Thursday after data showed manufacturing and retail activity weakening. That added to hopes the Fed might decide upward pressure on prices is easing and more rate hikes can be postponed or scaled down.
"Skipping a rate hike" at this month's Fed meeting would let policymakers "see more data before making decisions," said a board member, Philip Jefferson. The president of the Federal Reserve Bank of Philadelphia, Patrick Harker, made similar comments.
The statements "reignited the prospect of skipping a hike" after strong jobs data last week fed fears of more increases, said James Knightley of ING in a report.
However, Knightley said, if a monthly U.S. government report due Friday shows the job market still is strong, that "could easily swing things back in favor of a hike."
Late Thursday, the Senate gave final approval to an agreement to raise the amount the government can borrow in exchange for spending cuts.
