SYDNEY: Australian shares are seen slumping on Thursday after Wall Street dropped overnight as the US Fed Reserve decided to continue tapering its bond-buying program, but, an uptick in gold may hold off broader losses.
Local share price index futures lost 1.2 percent, a 117-point discount to the underlying S&P/ASX 200 index close. The benchmark recovered 1 percent on Wednesday.
New Zealand's benchmark NZX 50 index slipped 0.5 percent in early trade.
US stocks dropped more than 1 percent on Wednesday, hitting session lows after the Federal Reserve stuck with its plan to scale back stimulus even in the midst of emerging market turmoil.
South Africa's central bank raised interest rates for the first time in six years. Its move followed a dramatic rate hike by Turkey's central bank late Tuesday, designed to defend its crumbling currency.
Spot iron ore hovered near their lowest level since July, pressured by weaker steel prices in top consumer China and as trading activity winds down ahead of the Lunar New Year.
Gold rose in choppy trade as global equities slumped.
Fortescue Metals Group Ltd is due to release its second quarter production report later in the day.
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