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Asian shares mixed as investors speculate of timing of expected Fed hike

Published 03/18/2015, 11:45 PM
Updated 03/18/2015, 11:46 PM
© Reuters. Asian shares mixed
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Investing.com - Asian shares were mixed on Thursday as investors noted the Federal Reserve has moved to clarify the terms of a widely expected rate hike this year, but also left room to guess on the timing.

The Nikkei 225 fell 0.52% at the break while the Shanghai Composite rose 0.47%.

Overnight, stocks on the U.S equities markets surged on Wednesday afternoon after Federal Reserve chair Janet Yellen said on Wednesday the Fed will remove a “patience reference,” from its minutes, paving the way for an interest-rate hike at some point in 2015.

While Ms. Yellen indicated that its benchmark Federal Funds Rate could be increased later this year, it will not occur until after the Federal Open Market Committee’s next meeting in April, at the earliest.

Yellen added that the timing of the decision will be “data dependent,” and that a rate hike will not necessarily be made in June.

Drawing comparisons with Alan Greenspan by striking a well-balanced tone for the Fed’s short-term outlook, Yellen appeared hawkish with the removal of patience, but dovish with forecasts for weaker inflation and GDP growth.

The Dow Jones Industrial Average gained 227.11 points or 1.27% to close at 18,076.19. Stocks were down on the Dow by about 95 points minutes before the Fed released its statement at 2 p.m. EST.

The S&P 500 Composite index and NASDAQ Composite index also rebounded from earlier losses on the day to close broadly higher.

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