SYDNEY- Asian shares managed a semblance of calm on Thursday as the US Federal Reserve signaled it was in no rush to taper stimulus, though the mood was fragile as investors waited to see if Beijing could stem the recent bloodletting in Chinese shares.
There was also some promising news on the long-awaited US infrastructure bill as the Senate voted to move ahead on the $1.2 trillion deal.
Yet much depended on how China’s markets fared amid reports regulators had called banks overnight to ease market fears about tighter rules on the education sector.
“The message is that profit has not become a dirty word in the Chinese system of ‘Socialism with Chinese characteristics’, only in certain sectors,” said Ray Attrill, head of FX strategy at NAB.
“How successful the messaging by the authorities will be in putting a floor under the broader Chinese stock market remains to be seen.”
For now, gains were tentative with blue-chip shares up 1.4 percent, but still down more than 5 percent for the week, while the Shanghai Composite Index added 1.1 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 1.1 percent, having slid to its lowest since early December on Wednesday. Japan’s Nikkei edged up 0.4 percent, while South Korea was flat.
S&P 500 futures eased 0.2 percent, as did EUROSTOXX 50 futures. Nasdaq futures dipped 0.3 percent perhaps weighed by a retreat in Facebook stock.
Facebook Inc shed 3.5 percent after the company warned revenue growth would “decelerate significantly,” even as it reported strong ad sales.
Markets had see-sawed overnight when the Federal Reserve policy statement said “progress” had been made toward its economic goals, seeming to bring nearer the day when it might start tapering its massive asset buying campaign. – Reuters
