Equities edge higher but emerging market currencies feel the pressure

MSCI Asia Pacific Excluding Japan Index fell 2.1 percent to 399.04 as of 10:38 a.m.in Hong Kong, as commodity producers led declines after raw-material prices tumbled. Oil dropped. Australian bonds gave back Monday’s gains.

Chris Green, an Auckland-based strategist at First NZ Capital Ltd., said by phone. “The Fed is trying to soothe the market but it’s having the opposite effect”.

Among the actives, HSBC collected 0.42 percent, while Bank of East Asia climbed 1.12 percent, New World Development spiked 2.40 percent, Sino Land gained 1.35 percent, Galaxy Entertainment skidded 3.43 percent, Kunlun Energy jumped 2.79 percent, PetroChina advanced 1.58 percent, China Unicom spiked 1.79 percent, China Mobile surged 4.14 percent, China Life fell 1.42 percent and Bank of China retreated 1.13 percent.

Fed Bank of Atlanta chief Dennis Lockhart joined Fed presidents from San Francisco, St Louis and Richmond on Monday, saying he remains confident policy will be tightened this year as concerns over turmoil in global markets should prove temporary. Fed Chair Janet Yellen is slated to speak later this week, potentially providing more clarity as to whether to expect a rate increase this year. The regional gauge tumbled 1.9 per cent Monday.

The Shanghai Composite Index rose 0.92% but remained 38% lower than its June peak, while Hong Kong’s Hang Seng edged 0.18% higher.

Shanghai Jin Jiang global Hotels Group fell 7.4 percent after it agreed to acquire an 81 percent interest in Keystone Lodging Holdings for 8.27 billion yuan ($1.30 billion).

In Australia, the benchmark S&P/ASX 200 index closed up 0.7% at 5,103.55, with investors welcoming data that showed property prices rose the most in five years during the second quarter.

WALL STREET: Major US stock benchmarks ended higher as investors tried to look beyond uncertainty for interest rates. The benchmark measure for the mainland’s largest venue is heading for a third straight gain, the longest streak since August 17.