HONG KONG (AP) — Asian stocks were mixed Thursday as investor relief over a deal on the U.S. borrowing limits was offset by uncertainty over the departure of a senior Fed official and lingering North Korean tensions.
KEEPING SCORE: Japan’s benchmark Nikkei 225 rose 0.2 percent to 19,387.63 and South Korea’s Kospi jumped 1.1 percent to 2,345.73. The Shanghai Composite dipped 0.1 percent to 3,382.66 and other indexes gave up earlier gains, with Hong Kong’s Hang Seng index slipping 0.1 percent to 27,598.31 and Australia’s S&P/ASX 200 down less than 0.1 percent to 5,688.50. Taiwan’s benchmark fell and Southeast Asian indexes were mixed.
DEBT DEAL: Trump came to a deal with congressional Democrats to raise America’s debt limit for three months, overruling Republicans in the process. The immediate goal was ensuring money for storm relief as Trump sought to help speed the $7.9 billion aid bill for Hurricane Harvey victims, but the move also helps keep the government operating, removing some short-term uncertainty for investors.
FED IN FLUX: In a surprise announcement, the Federal Reserve said Vice Chairman Stanley Fischer will resign next month for personal reasons, leaving a fourth vacancy on the U.S. central bank’s seven-member governing board. The unexpected departure of Fischer, a widely-respected economist, adds to a leadership vacuum at the top of the Fed as it navigates a difficult path. It plans to slowly raise interest rates as the U.S. economy grows and unemployment falls, even as inflation remains below target, complicating its future course.
NUCLEAR TENSIONS: North Korea’s nuclear program remains in the headlines though the focus now shifts to diplomacy, with the U.S., South Korea and Tokyo all calling for tougher sanctions including cutting off oil supplies. Meanwhile, the U.S. military completed placing more launchers for the high-tech U.S. missile defense system installed in South Korea to better cope against Pyongyang’s threats.
QUOTEWORTHY: “Surprises galore are greeting Asia traders as we digest the astonishing overnight headlines,” said Stephen Innes, head of Asia trading at OANDA. Fischer’s resignation, the debt deal and an unexpected rate hike by Canada’s central bank on strong economic growth “all caught market watchers by surprise,” he said.
WALL STREET: Major U.S. benchmarks ended higher. The Standard & Poor’s 500 index rose 0.3 percent to 2,465.54. The Dow Jones industrial average added 0.3 percent to 21,807.64. The Nasdaq composite gained 0.3 percent to 6,393.31.
ENERGY: The rally in oil futures fizzled out. Benchmark U.S. crude dipped 12 cents to $49.04 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained 50 cents, or 1 percent, to settle at $49.16 a barrel Wednesday. Brent crude, used to price international oils, slipped 16 cents to $54.04 a barrel in London.
CURRENCIES: The dollar weakened to 109.05 yen from 109.23 yen Wednesday. The euro strengthened to $1.1927 from $1.1918.
