Asian stocks advance after worries over Fed rate hike ease

FED FACTOR: Markets are watching for what the Federal Reserve might do on interest rates, weighing various economic indicators.

There was further momentum in late USA trading, which carried over to the early Asian session on Tuesday with a peak just above $19.30.

Dow e-minis were down 94 points, or 0.51 percent, with 8,733 contracts changing hands. The group expects weaker growth because of a more pronounced slowdown in the global economy. Banks and phone companies are also falling. The Fed’s next meeting is set for later this month.

“Some of the things they said Friday scared people”, he said.

KEEPING SCORE: The Dow Jones industrial average rose 65 points, or 0.4 percent, to 18,150 as of 12:25 p.m. A barrel of benchmark crude was down $1.10, or 2.4 percent at $45.20 while Brent crude, the worldwide standard, fell 93 cents, or 1.9 percent, to $47.42 a barrel. But Australia’s S&P/ASX 200 lost 0.2 percent to 5,240.34 and the Shanghai Composite index fell 0.3 percent to 3,012.84. The price of oil has plunged over the last two years as an enormous supply glut built up while growth in demand slowed.

German investor sentiment remained unchanged in September from its slightly positive level in August, disappointing analyst expectations, the ZEW economic institute said. US benchmark crude fell 71 cents to $45.17 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the benchmark for worldwide oil prices, slid $1.10, or 2.2 percent, to $47.21 a barrel in London.

Anadarko Petroleum was down 2.2 percent at $56.50 after it agreed to buy Freeport McMoRan’s Gulf of Mexico assets.

PERRI-GOING UP: Irish drug and ingredient maker Perrigo added $4.87, or 5.5 percent, to $93.58 after the activist investment firm Starboard Value bought a 4.6-percent stake in the company. Higher rates threaten stocks by making interest-paying savings accounts and bonds more attractive to investors. It rose $2.51, or 2.4 percent, to $107.95 after T-Mobile said preorders for Apple’s newest iPhones, introduced last week, are the strongest it has seen so far. Freeport was down 1.2 percent at $10.95. The yield on the 30-year Treasury bond also jumped.

Only 20 stocks in the S&P 500 index traded higher. After a market nosedive on Friday, investors are putting money into safe-play investments like household goods makers and phone companies.

After rallying in Europe following the weaker than expected data from the United Kingdom and Germany, bond markets were subjected to renewed selling pressure during the NY session with U.S. yields sharply higher at three-month highs above 1.73%.

CHIP CHIP, HOORAY: Among the few gainers early Tuesday was chipmaker Intersil, which agreed to be bought by Renesas of Japan. The financial index was down 1.43 percent.

SLIMMING DOWN: Weight Watchers International slumped 45 cents, or 4.3 percent, to $9.91 after the weight loss company said CEO James Chambers will step down at the end of the month. Weight Watchers more than doubled after the company announced an alliance with Oprah Winfrey, who has touted the company’s products, bought a 10 percent stake, and joined the board of directors. Heating oil sank 2 cents to $1.42 a gallon. Verizon shed $1.31, or 2.5 percent, to $51.26 and AT&T fell 85 cents, or 2.1 percent, to $39.86.

Gold dipped $1.90 to $1,323.70 an ounce. Copper held steady at $2.10 a pound.

CURRENCIES: The dollar rose to 101.98 yen from 101.89 yen while the euro slipped to $1.1233 from $1.1238. On the Nasdaq, 1,748 issues fell and 486 advanced. Britain’s FTSE 100 edged 0.1 percent lower to 6,692.22.