Berliner Boersenzeitung - Asian stocks drop after Fed warning, oil dips with Mideast in focus

EUR -
AED 4.326661
AFN 82.273942
ALL 97.898814
AMD 452.629971
ANG 2.108041
AOA 1080.157743
ARS 1459.669854
AUD 1.798908
AWG 2.12321
AZN 2.007149
BAM 1.955418
BBD 2.377585
BDT 144.451806
BGN 1.956287
BHD 0.443228
BIF 3508.115287
BMD 1.177925
BND 1.499675
BOB 8.137239
BRL 6.38271
BSD 1.177545
BTN 100.498238
BWP 15.596956
BYN 3.853566
BYR 23087.331819
BZD 2.365338
CAD 1.603215
CDF 3398.314319
CHF 0.935405
CLF 0.028547
CLP 1095.459023
CNY 8.440309
CNH 8.439249
COP 4712.218658
CRC 594.671311
CUC 1.177925
CUP 31.215015
CVE 110.243483
CZK 24.646321
DJF 209.341311
DKK 7.461454
DOP 70.474749
DZD 152.109697
EGP 58.022699
ERN 17.668876
ETB 163.423335
FJD 2.637615
FKP 0.862798
GBP 0.862601
GEL 3.204416
GGP 0.862798
GHS 12.187363
GIP 0.862798
GMD 84.22618
GNF 10213.006627
GTQ 9.054041
GYD 246.364006
HKD 9.2463
HNL 30.765995
HRK 7.530244
HTG 154.606543
HUF 399.203326
IDR 19062.0084
ILS 3.939983
IMP 0.862798
INR 100.936107
IQD 1542.566183
IRR 49620.09495
ISK 142.446936
JEP 0.862798
JMD 187.953315
JOD 0.835195
JPY 170.275556
KES 152.141258
KGS 103.010002
KHR 4731.076589
KMF 492.373101
KPW 1060.089343
KRW 1606.325121
KWD 0.359609
KYD 0.981408
KZT 611.529492
LAK 25374.508866
LBP 105506.967917
LKR 353.301043
LRD 236.098907
LSL 20.713857
LTL 3.478107
LVL 0.712516
LYD 6.342762
MAD 10.569437
MDL 19.835707
MGA 5298.853309
MKD 61.531087
MMK 2473.232981
MNT 4226.84635
MOP 9.521142
MRU 46.736878
MUR 52.948179
MVR 18.14445
MWK 2042.018775
MXN 21.952406
MYR 4.972067
MZN 75.340533
NAD 20.713418
NGN 1802.15516
NIO 43.331543
NOK 11.864468
NPR 160.792204
NZD 1.944493
OMR 0.452069
PAB 1.17757
PEN 4.175585
PGK 4.864051
PHP 66.570482
PKR 334.279155
PLN 4.24364
PYG 9383.969276
QAR 4.30386
RON 5.059075
RSD 117.399127
RUB 92.591703
RWF 1692.769606
SAR 4.417612
SBD 9.820272
SCR 16.592058
SDG 707.348348
SEK 11.256846
SGD 1.499974
SHP 0.925664
SLE 26.444855
SLL 24700.50455
SOS 672.95437
SRD 44.036774
STD 24380.6712
SVC 10.303989
SYP 15315.416699
SZL 20.696906
THB 38.082753
TJS 11.451765
TMT 4.134517
TND 3.430858
TOP 2.758823
TRY 46.955033
TTD 7.986272
TWD 34.086841
TZS 3117.621455
UAH 49.110415
UGX 4224.085893
USD 1.177925
UYU 47.260776
UZS 14787.113854
VES 128.951587
VND 30838.07893
VUV 140.328108
WST 3.064638
XAF 655.828995
XAG 0.031783
XAU 0.000353
XCD 3.183402
XDR 0.815779
XOF 655.828995
XPF 119.331742
YER 285.234989
ZAR 20.722353
ZMK 10602.74357
ZMW 28.525827
ZWL 379.291399
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Asian stocks drop after Fed warning, oil dips with Mideast in focus
Asian stocks drop after Fed warning, oil dips with Mideast in focus / Photo: Bertha WANG - AFP

Asian stocks drop after Fed warning, oil dips with Mideast in focus

Asian stocks fell Thursday after the Federal Reserve warned Donald Trump's trade war would likely reignite US inflation and dampen economic growth, while oil prices edged down as investors awaited developments in the Israel-Iran conflict.

Text size:

While geopolitical tensions are the key focus for markets, traders were also watching the US central bank's latest meeting Wednesday as officials gathered to discuss monetary policy in light of the president's tariff blitz.

The Fed kept borrowing rates on hold for a fourth consecutive meeting, as expected, and said in a statement that "uncertainty about the economic outlook has diminished but remains elevated".

It later cut its economic growth forecast for this year and raised inflation and unemployment expectations, in its first updated projections since Trump unveiled his levies on most trading partners at the start of April.

Boss Jerome Powell called the economy "still solid" but added that "increases in tariffs this year are likely to push up prices and weigh on economic activity".

He said the bank was "well-positioned to wait to learn more" before considering changes to rates. Still, the Fed's so-called dot-plot chart predicted two cuts this year.

"Ultimately, the cost of the tariff has to be paid and some of it will fall on the end consumer," he added. "We know that's coming and we just want to see a little bit of that before we make judgements prematurely."

With Trump increasingly calling for the bank to slash rates, Powell said: "We'll make smarter and better decisions if we just wait a couple of months."

Hours before the decision, the president said: "We have a stupid person, frankly, at the Fed."

Speaking at the White House, he added: "We have no inflation, we have only success, and I'd like to see interest rates get down. Maybe I should go to the Fed. Am I allowed to appoint myself?"

"The Fed's assessment indicates that the economy is in good shape, aligning with current economic data," said Tai Hui at JP Morgan Asset Management.

"However, trade policy, fiscal policy, and unintended consequences of policies from the Trump administration are contributing to market volatility in the second half of this year."

After a tepid day on Wall Street, Asian markets turned lower.

Hong Kong led losses, falling more than one percent, while Tokyo, Shanghai, Sydney, Singapore, Seoul, Wellington, Taipei, Manila and Jakarta were also in the red.

The Fed comments compounded the already weak sentiment on trading floors as Trump considers whether to join Israeli strikes against Iran.

He indicated he was still looking into such a move and that Iran had reached out seeking negotiations, saying: "I may do it, I may not do it. I mean, nobody knows what I'm going to do."

Without providing more details, he added: "The next week is going to be very big."

Iran's supreme leader Ayatollah Ali Khamenei earlier sounded a defiant note, rejecting Trump's call for "unconditional surrender".

Still, with no concrete signs of escalation, oil prices edged down after another volatile day on Wednesday.

Analysts said the main worry for traders was the possibility Tehran will shut a key shipping lane through which an estimated fifth of global oil supply flows.

"We don't see it as a likely scenario at this time, but given the precarious state that the Iran regime is in right now, I think everybody should be watching" the Strait of Hormuz, Mike Sommers, president of the American Petroleum Institute, told Bloomberg television in an interview.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: DOWN 0.7 percent at 38,597.16 (break)

Hong Kong - Hang Seng Index: DOWN 1.0 percent at 23,486.26

Shanghai - Composite: DOWN 0.3 percent at 3,377.19

Euro/dollar: DOWN at $1.1455 from $1.1485 on Wednesday

Pound/dollar: DOWN at $1.3396 from $1.3420

Dollar/yen: UP at 145.15 yen from 145.09 yen

Euro/pound: DOWN at 85.51 pence from 85.55 pence

West Texas Intermediate: DOWN 0.4 percent at $74.86 per barrel

Brent North Sea Crude: DOWN 0.4 percent at $76.40 per barrel

New York - Dow: DOWN 0.1 percent at 42,171.66 (close)

London - FTSE 100: UP 0.1 at 8,843.47 (close)

(P.Werner--BBZ)