Asia shares ease, dollar holds firm after Fed minutes



By Scott Murdoch

HONG KONG, Aug 18 (Reuters) - Asian shares fell on Thursday, tracking Wall Street's losses as the U.S. Federal Reserve looked set to maintain its path of interest rate hikes, although signs it may be less aggressive in tightening gave investors some cause for hope.

The dollar rose overnight after the Fed's July minutes pointed to a steady course of rate hikes ahead.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.4%, after U.S. stocks ended the previous session with mild losses. The index is up 1.3% so far this month.

Hong Kong's Hang Seng Index .HSI was down 0.73% while China's blue chip CSI300 .CSI300 was off 0.94%.

The Fed's minutes for its July meeting showed it was contemplating paring back the pace of future rate hikes in line with a slowdown in inflation but saw "little evidence" yet that pressures were easing.

Reflecting the mixed mood, Wall Street futures dipped while European futures rose in Asian afternoon trade.

Investors interpreted the minutes as a sign the U.S. tightening cycle could be less aggressive than forecast but showed Fed policymakers committed to raising rates till prices come under control.

"Investors need to hedge urgently - the environment which has led to this bear market rally, which we concede we did not see being as strong as it has been, is about to change," said Mohammed Apabhai, Citigroup's head of Asia Pacific Trading Strategies.

"The Fed has seen monetary conditions loosening and is now set to continue with its tightening. In particular, it is now set to double the pace of quantitative tightening from the current $47.5 billion to $95 billion starting Sept. 1."

In early European trade, the pan-region Euro Stoxx 50 futures STXEc1 were up 0.19%, German DAX futures FDXc1 were up 0.15% and FTSE futures FFIc1 were up 0.16%.

In comparison, U.S. stock futures, the S&P 500 e-minis ESc1 , were down 0.13%.

In Asia, ongoing geopolitical worries continue to dampen sentiment in the region, especially mainland Chinese equities.

"There is a combination of concerns in China that are adding weight and creating a sea of red across the boards," said Kerry Craig, JPMorgan Asset Management strategist.

"In the Asian region, central banks are not done with rate hikes and that is weighing on markets too."

The yield on the benchmark 10-year Treasury notes US10YT=RR rose initially in Asian trade but later retreated to 2.8676% compared with its U.S. close of 2.895% on Wednesday.

The two-year yield US2YT=RR , which rises with traders' expectations of higher Fed funds rates, stood at 3.2768% compared with a U.S. close of 3.295%.

Higher yields helped strengthen the dollar, which rose following the release of the Fed minutes. In early Asian trade, the dollar index =USD gave up some of the overnight gains but rallied later in the day to gain 0.09% to be at 106.74.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, is up about 0.8% this week -- putting the brakes on a pullback that began about a month ago.

"The U.S. dollar got back onto a rallying tack ... and did so with some force, making this week's gains sizeable," CBA analysts wrote.

"The world economy broadly looks to be a slower growing place, favouring the greenback."

U.S. crude CLc1 ticked up 0.03% to $88.14 a barrel. Brent crude LCOc1 rose to $93.71 per barrel.

Gold was slightly higher. Spot gold XAU= was traded at $1762.79 per ounce.



World FX rates YTD Link
Global asset performance Link
Asian stock markets Link



Reporting by Scott Murdoch in Hong Kong; Editing by Jacqueline
Wong and Sam Holmes



Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.