Asian stocks continue their rally this week, driven by the feeling that the US Federal Reserve will not raise rates. The MSCI Asia Pacific index was up 0,5% to 138.81 as of 9:02am in Tokyo, before the opening of the Chinese and Hong Kong markets. A slowdown in global growth and a strengthening dollar would pose potential risks for the US economy, according to findings during the September Fed meeting and disclosed to the general public.
“This news has had a steroid effect on the market,” says Matthew Sherwood, head of investment markets research at Perpetual in Sydney. The Fed meeting "seems to suggest that rates will remain at current levels for longer than initially expected, especially if global demand remains weaker than expected." Japan's Topix was up 0,4 percent. The New Zealand NZX 50 rose 0,1 percent. The South Korean market was closed for a holiday. Australia's S&P/ASX 200 was up 1,2 percent. There will be 15.500 new workers on the US payroll in September, up from an increase of 32.100 in August, according to a pool of economists polled by Bloomberg.
