South Korea’s rate decision, oil and currencies

SINGAPORE – Asia-Pacific stocks were mixed at the start of trading on Thursday, as US markets hit record highs again. Meanwhile, South Korea’s central bank has raised interest rates.

Japan’s Nikkei 225 rose 0.36%, while the Topix edged up 0.14%.

In Australia, the S & P / ASX 200 lost 0.31%.

South Korea’s central bank raised interest rates, a move analysts expected. This made it the first developed economy to do so in the era of the pandemic.

The Bank of Korea raised its rate 25 basis points to 0.75%.

“The virus situation in Korea has deteriorated since the July central bank meeting, when it gave strong signals that tightening was imminent,” Capital Economics wrote in a note ahead of the announcement.

“However, the economy has become increasingly resistant to epidemics as businesses have learned to live with the virus,” he said, adding that rising household debt and rising prices housing exacerbated financial stability problems.

South Korea’s Kospi fell 0.13% after the rate announcement.

US stocks climbed again overnight. The Dow Jones Industrial Average rose 39.24 points, or 0.1%, to 35,405.50. The S&P 500 added 0.2% to a new closing high of 4,496.19. The Nasdaq Composite gained 0.1% to 15,041.86, also a new closing high.

The US dollar index, which tracks the greenback against a basket of its peers, fell to 92.819, after levels above 93 earlier this week.

The Japanese Yen traded at 110.01, weakening from the 109 level in recent days. The Australian dollar changed hands at $ 0.7277, a little stronger than levels above $ 0.725 earlier this week.

Oil prices fell in the morning of Asian hours. International benchmark Brent crude futures fell 0.58% to $ 71.83 per barrel. US crude futures contracts 0.69% at $ 67.89.