Asian shares rose yesterday after US lawmakers passed a last-minute bill to reopen the government and raise the country’s borrowing limit, avoiding a devastating default that threatened to spark another global recession.
Investors breathed a sigh of relief as Republican and Democratic senators found a compromise budget after weeks of bitter rows on Capitol Hill that called into question Washington’s credibility with its creditors, including China and Japan.
Tokyo rose 0.83 percent, or 119.37 points, to close at 14,586.51, Seoul added 0.29 percent, or 6.00 points, to finish at 2,040.61, while Sydney climbed 0.38 percent, or 20.2 points, to end at 5,283.1.
Taipei gained 0.51 percent, or 42.50 points, to 8,374.68, but Hong Kong lost 0.57 percent, or 133.45 points to 23,094.88, while Shanghai closed down 0.21 percent, or 4.53 points, at 2,188.54 as dealers await the release today of China’s third-quarter economic growth data.
“Approval of the debt deal eliminates uncertainties, which is good for the market,” Mitsubishi UFJ Asset Management chief fund manager Keisuke Shirasuka told reporters.
“However, as the market wasn’t factoring in a US default, shares weren’t oversold. Consequently, the approval will unlikely trigger major buy backs,” Shirasuka added.
Despite the upbeat news from Capitol Hill, Credit Agricole said: “We have a short-term extension but will likely be in a similar ‘crisis’ situation early next year... It’s hard to be optimistic on any easy solution in the negotiations that will take place over the next few months.”
On currency markets, the US dollar spiked against the yen in early trade, hitting ￥99.00 at one point, before falling in the afternoon.
The greenback bought ￥98.00 against ￥98.79 in New York on Wednesday, while the euro fetched US$1.3620 and ￥133.46 compared with US$1.3535 and ￥133.74.
In oil trade, New York’s main contract, West Texas Intermediate for delivery next month, was down US$0.55 to US$101.74 a barrel in afternoon trade, and Brent North Sea crude for December dipped US$0.48 to US$110.11.
Gold cost US$1,310.40 compared with US$1,282.80 on Wednesday.
STEPPING UP: The firm has also asked employees to work in split shifts from this week and to halt all but essential overseas business travel from next month Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has implemented a remote work policy for employees not on production lines in an attempt to curb the spread of COVID-19, the world’s largest contract chipmaker said yesterday. This is the first time in the Hsinchu-based company’s history that it has launched a large-scale remote work policy, joining global technology companies, such as Apple Inc and Google, that encourage employees to work from home. The chipmaker has also asked employees to work in split shifts from this week, it said. As the number of virus infections continues to climb worldwide, TSMC has urged employees to halt unnecessary
A two-hour drive south of Amsterdam in Veldhoven, workers decked out head-to-toe in protective gear toil in vast assembly halls. Before entering the inner sanctuary of the facilities, they meticulously layer on masks, gloves and special socks. A single speck of dust or a hair can have devastating effects on production. The result of all this painstaking process is an environment that is 10,000 times more purified than outside. As COVID-19 grips the world, it might just be the safest place to work right now. The teams belong to ASML Holding NV, which holds a de facto monopoly on the industry of
DBS Bank Ltd yesterday hacked its GDP growth forecast for Taiwan this year to 0.9 percent, down from its estimate of 2.3 percent two months earlier, in light of the COVID-19 pandemic and increasing financial market volatility. The bank’s latest forecast was even lower than London-based IHS Markit Ltd’s estimate of 1 percent, while other research institutes’ projections range from 1.6 percent to 2.6 percent. Taiwan’s economic momentum is being negatively affected by the pandemic, DBS said. The rapid spread of the disease from Asia to Europe and the US has dampened the bank’s previous expectation of a “V-shaped” global rebound in the
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