Singapore’s shares face negative leads from Wall Street and early Asia markets on Friday as U.S. dollar strength following the Federal Reserve meeting may damp sentiment across emerging markets.
The Federal Reserve meeting sent the dollar on a zig-zag path, as it affirmed market exceptions of a rate hike in December, but the central bank’s statement didn’t move the needle on economic forecasts much.
“The Fed made no changes to its game plan today and remains on a gradual path for interest rate hikes if the economy evolves as they expect. Even if they lift interest rates higher they say these moves will still be consistent with a stronger economy. There are no material risks to the outlook,” Chris Rupkey, chief financial economist at MUFG, said in an emailed note on Thursday U.S. time. The email had a subject line of “waited all day for Fed and all’s I got was this stupid T-shirt.”
Japan’s Nikkei 225 index was down just 0.1 percent at 8:17 A.M. SGT, likely getting a fillip from a weaker yen, while South Korea’s Kospi was down 0.78 percent at 8:22 A.M. SGT.
Singapore’s Straits Times Index ended Thursday up 0.91 percent at 3093.24; November futures for the index were at 3095 on Thursday, while December and January futures were at 3093 and 3095 respectively.
Hong Kong’s Hang Seng Index rose 0.31 percent to end Thursday at 26,227.72, while China’s CSI shed 0.28 percent to 3212.774.
Indonesia’s IDX Composite rose 0.62 percent to 5976.81 on Friday, while Malaysia’s KLCI advanced 0.38 percent to 1721.42.
The Dow Jones Industrial Average edged up 0.04 percent to end Thursday at 26,191.22, the Nasdaq Composite shed 0.53 percent to 7530.885, and the S&P 500 lost 0.25 percent to 2806.83. Futures for the three indexes were pointing slightly down in early trade.
The U.S. dollar index, which measures the greenback against a basket of currencies, was at 96.63 at 7:05 A.M.. SGT, a tad of Thursday’s high of around 96.72 after it climbed through the session from as low as 96.08, according to ICE futures data.
“With FOMC and the U.S. Midterm Election no longer posing a threat to the dollar’s rally, currencies that enjoyed strong recoveries this month could see more profit taking on Friday,” Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, said in a note on Thursday.
The 10-year U.S. Treasury note yield was at 3.237 percent at 8:19 A.M. SGT after rising as high as 3.242 percent through Thursday’s session from as low as 3.205 percent, according to Tullett Prebon data.
The euro/dollar was at 1.1366 at 8:23 A.M. SGT after trading in a 1.1350 to 1.1447 range on Thursday, according to DZHI data.
The dollar/yen was at 113.99 at 8:23 A.M. SGT after trading in a 113.48 to 114.088 range on Thursday, according to DZHI data.
The dollar/yuan ended Thursday at 6.9317 after trading in a 6.9173 to 6.9366 range during the session, according to DZHI data.
The dollar/Singapore dollar was at 1.3748 at 8:24 A.M. SGT after trading in a 1.3691 to 1.3757 range on Thursday, according to DZHI data.
The dollar/Indonesian rupiah ended Thursday at 14,649 after trading in a 14,530 to 14,760 range during the session, according to DZHI data.
The dollar/Malaysian ringgit ended Thursday at 4.1620 after trading in a 4.1610 to 4.1695 range during the session, according to DZHI data.
Nymex WTI crude oil futures for December were up 0.08 percent at US$60.72 a barrel at 7:57 A.M. SGT, while ICE Brent Crude oil futures for January were down 1.97 percent at US$70.65 a barrel at 6:59 A.M. SGT, according to Bloomberg data.