The key domestic benchmarks are likely to open higher
and snap a five-day losing streak tracking a positive trend across most markets
in Asia and a bullish closing at Wall Street overnight after the US Federal
Reserve pledged to be patient on interest rate increases, bolstering optimism
over robust fund inflows into emerging markets. The Fed replaced a vow to keep
borrowing costs at low levels for a “considerable time” with a commitment to the
patient over the timing of raising interest rates even as it raised its outlook
over the job market. The Fed is assessing a decline in the unemployment rate
against plunging oil prices which may keep inflation well below the Fed’s 2 per
cent goal. China’s Shanghai Composite fell after new home prices in China in
November declined in 67 out of the 70 cities covered by a government survey.
Hang Seng rose after Chinese policymakers took more steps to support the
economy, while Japan’s Nikkei 225 surged as a weaker yen bolstered the appeal of
exporter stocks.
