Shares in Asia Mixed Despite Wall Street Lead

Shares in Asia were mixed on Monday, with some failing to take a positive lead from Wall Street and despite hopes the US Federal Reserve may wait until 2016 to raise interest rates.

Shares in Asia Mixed Despite

In Australia, the S&P/ASX 200 was down 0.81% % at 5,236.90 after hitting a six-week peak on Friday.

While South Korea’s benchmark Kospi was flat at 2.019.61 points in mid morning trade.

Shares in China however were looking more positive.

Hong Kong’s Hang Seng index was up 0.81% at 22,648.10, while on the mainland the Shanghai Composite was up 0.55% at 3,200.53.

Markets in Japan are closed for a public holiday.

Analysts agreed the Fed was looking less likely to raise rates soon, which could mean more money would flow into markets.

“The only data supporting raising the Fed funds rate has been employment, which has begun to shrink in the last quarter, coupled with increased talks of the approaching debt ceiling negotiations – not to mention the 2016 Presidential elections,” said Evan Lucas from IG Markets.

“All [this] means we are seeing signs of the lift-off being pushed back, as inflation remains nowhere to be seen,” he said.

About the Author