Asian equities posted modest gains on Monday while the US dollar slipped, as investors digested news that the US Justice Department has subpoenaed the Federal Reserve, fuelling concerns over the independence of the central bank.
Federal Reserve Chair Jerome Powell confirmed the unprecedented move late Sunday, criticising it as part of US President Donald Trump’s pressure campaign for further interest-rate cuts. The Fed has signalled that it intends to keep rates unchanged.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a statement.
Powell added that the Fed received grand jury subpoenas on Friday linked to his Senate testimony in June regarding a major renovation project of Federal Reserve office buildings.
Market sentiment was also influenced by Friday’s weaker-than-expected US jobs report, which showed just 50,000 new jobs added in December, while unemployment edged down to 4.4 percent.
The dollar fell around 0.2 percent against major currencies, according to Bloomberg, while gold jumped about 1.5 percent as investors sought safe-haven assets amid rising political uncertainty.
Asian markets were higher in early trading, with Hong Kong, Shanghai, Seoul and Taipei advancing, tracking Wall Street’s record close on Friday. Markets in Bangkok, Manila, Singapore, Kuala Lumpur and Jakarta also moved higher.
Globally, stock markets have enjoyed a strong start to the year, with indices in Frankfurt, London, Paris and Seoul hitting record highs last week on optimism surrounding the technology sector and gains in defence-related stocks.
Oil prices dipped slightly but remained largely steady following last week’s rally, as protests in Iran heightened geopolitical risks and the US seizure of Venezuelan crude added to concerns over global supply dynamics.
US President Trump has warned Tehran of repercussions if demonstrators are harmed, while Iran has cautioned against foreign interference. On Sunday, Trump said he was considering possible military action following reports of a violent crackdown on protesters, while also claiming that Iran’s leadership had sought negotiations.
Source: AFP
Bd-pratidin English/ Jisan
