Fed Move Helps Lift HK, Asian Markets

Hong Kong shares fell more than 1 percent in the morning session on Thursday after the Federal Reserve cut interest rates but left traders unsure about its plans for future reductions.

The Hang Seng Index fell 1.2 percent, to 26,421 by the break.

On the mainland, Shanghai Composite Index was flat at midday break, at 2,985 while the Shenzhen Composite Index gained 0.4 percent, to 1,661.

Tokyo's Nikkei, which was up more than 1 percent ahead of the announcement, pared the gains in the afternoon to sit 0.3 percent higher as the yen rallied against the US dollar.

Sydney was up 0.3 percent, Seoul rose 0.2 percent, Singapore dipped 0.1 percent and Wellington was unmoved.

The easing stance taken by central banks comes as traders try to juggle a series of – mostly negative – issues including the China-US talks, the slowing economy and fresh geopolitical concerns after the weekend Saudi oil plant strike.

"In the end, we are keeping a keen eye on trade discussions, on recently concerning oil dynamics, on market liquidity, on Brexit, on the pace of slowing employment conditions, and as always on the inflation readings" to work out when the Fed will cut again, said Rick Rieder, BlackRock's Chief Investment Officer of Global Fixed Income.

Oil markets have settled for now – both main contracts were slightly higher on Thursday – after the surge in prices at the start of the week caused by the Saudi blasts. But traders remain on alert for further developments including the US and Saudi response, with both putting the blame at Iran's door. (AFP)

______________________________