Hong Kong, Tokyo Markets Climb On Fed Signal

Hong Kong shares ended the week on a strong note on Friday, jumping more than 1 percent on hopes for a sharp interest rate cut by the Federal Reserve later this month.

The Hang Seng Index added 1.1 percent, to 28,765.

On the mainland, the Shanghai Composite Index climbed 0.8 percent, to 2,924 and the Shenzhen Composite Index gained 0.8 percent, to 1,560.

Asian markets rallied after comments from the influential Fed vice chairman John Williams was a signal for deeper interest rate cut by end of the month.

"Williams' remarks put probabilities of multiple rate cuts higher after strong economic indicators had put doubts on the number of rate reductions this year and how deep the cut will be," said Oanda senior market analyst Alfonso Esparza.

Tokyo ended 2 percent higher.

Seoul jumped 1.4 percent, Singapore gained 0.4 percent and Sydney put on 0.8 percent with Taipei adding 0.7 percent. Wellington, Manila and Jakarta were also well up but Mumbai fell more than 1 percent in disappointment with government plans for a super-rich tax.

The softer US dollar was also helping oil prices rally, while Donald Trump's claims that the US had downed an Iranian drone that threatened an American naval vessel also provided strong support.

However, Vanguard Markets' Stephen Innes said the commodity remained under pressure from concerns about demand, despite moves to loosen monetary policy.

"It's not central bank liquidity that oil markets need but global economic growth," he said. "All the money in the world isn't going to alleviate the fact markets are mired in a trade war-induced global economic slump that is factoring in both consumer and industrial consumption metrics." (AFP)