South Korea Interest Rate Decision, Oil and Currencies


SINGAPORE – Asia-Pacific stocks were mixed in early trading Thursday as US markets hit record highs again. In the meantime, the South Korean central bank has increased interest rates.

The Japanese Nikkei 225 was up 0.36% while the Topix was up 0.14%.

In Australia, the S & P / ASX 200 lost 0.31%.

The South Korean central bank has raised interest rates, a decision analysts expect. This made it the first developed economy in the pandemic era.

According to Reuters, it raised its key rate by 25 basis points to 0.75%.

“The virus situation in Korea has worsened since the central bank meeting in July when it gave strong signals that tightening was imminent,” Capital Economics wrote in a note prior to the announcement.

“However, the economy has become increasingly resilient to outbreaks as businesses learned to live with the virus,” it said, adding that rising household debt and rising home prices are adding to financial stability issues.

South Korea’s Kospi was trading unchanged after the exchange rate was announced.

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US stocks rose again overnight. The Dow Jones Industrial Average rose 39.24 points, or 0.1%, to 35,405.50. The S&P 500 rose 0.2% to a new closing high of 4,496.19. The Nasdaq Composite rose 0.1% to 15,041.86, also a new closing high.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its peers, fell to 92.819, a level above 93 earlier this week.

The Japanese yen was trading at 110.01, weakening from 109 in the past few days. The Australian dollar traded at $ 0.7277, slightly stronger than levels above $ 0.725 earlier this week.

Oil prices fell on the morning of the Asia hour. The international benchmark Brent crude oil futures declined 0.58% to $ 71.83 a barrel. US Crude Oil Futures 0.69% at $ 67.89.