Asian shares soar on wings of dovish Fed message
Asian shares surged and the dollar skidded on Thursday after minutes of the U.S. Federal Reserve’s latest policy meeting showed concerns about downside risks of a stronger dollar and the global economy.
European shares were expected to take their cues from the gains, with financial spreadbetters predicting Britain’s FTSE 100 .FTSEto open 67 to 70 points higher, or as much as 1.1 percent; Germany’s DAX .GDAXI to rise 126 to 131 points, or as much as 1.5 percent; and France’s CAC 40 .FCHI to gain 60 to 62 points, or as much as 1.5 percent.
But gains could be tempered after data released on Thursday underscored weakness in Europe’s largest economy. German exports slumped by 5.8 percent in August, their biggest fall since the height of the global financial crisis in January 2009.
“Fed officials have concerns on the impact of a strong dollar, which undermines the scenario held by some that Japanese shares will benefit from further strength in the dollar against the yen,” said Masayuki Doshida, senior market analyst in Tokyo for Rakuten Securities.
In the currency market, where the dollar had gained sharply over the past three months on the perception that higher U.S. rates down the road will attract more funds, investors rushed out of dollar-buying positions.
Gold climbed to its highest in about two weeks as the dollar lost ground, with spot gold rising about 0.4 percent to $1,226.40 an ounce.
Source: Reuters- Asian shares soar on wings of dovish Fed message
