It's time now for an in-depth look at the global markets this afternoon.
And for that, I'm joined on the line by Mr. Daniel Yoo, global strategist at Yuanta Securities.
Mr. Yoo, thank you as always for coming on.
Today the chief executive of Hong Kong, Carrie Lam, officially withdrew the bill that would have allowed for the extradition of criminals to mainland China. This was a key demand of the protesters, so Hong Kong stocks are up. Wall Street also saw gains overnight. How's it looking today there and elsewhere?
Hong Kong's Chief Executive Carrie Lam reiterated on Thursday that the controversial bill that led to mass protests will be fully withdrawn with "no debate."
She said at a regular press briefing on Thursday morning that the bill "will be fully withdrawn, there will be no debate and no voting."
On Wednesday evening, Lam had announced the formal withdrawal of a contentious extradition bill that has sparked months of mass protests that have turned increasingly violent. The bill, if passed, would have paved the way for people in Hong Kong to be sent to mainland China for trial.
It was one of five demands by protesters, with the others including the retraction any characterization of the movement as a "riot," and to drop all charges against protesters.
Risk appetite is back.
US market up sharply. SP +1.08%, Nasdaq +1.3%
Europe also up 0.88%
China continues to rise Shanghai +1.49%, Shenzhen +2.02%
Japan up 2.18%, Korea up 1% for Kospi and 0.45% for Kosdaq. Kospi broke above 2000 level.
The Federal Reserve has released its beige book for last month, showing modest growth in the U.S. economy, not much different from the month before. Tell us more about what's in that report.
The U.S. economy expanded at a modest pace from June through August, despite looming concerns about the U.S.-China trade war, according to the Federal Reserve's Beige Book.
Almost all of the Fed's 12 districts reported modest growth over the past few months, the Fed said in its region-by-region roundup of anecdotal information known as the Beige Book. The report, prepared by the Federal Reserve Bank of St. Louis, was based on information collected through Aug. 23. Although concerns regarding tariffs and trade policy uncertainty continued, the majority of businesses remained optimistic about the near-term outlook," the report said.
Overall, wages grew at a modest pace, on par with the previous reporting period. Employment varied across industries, but manufacturing -- often used as a telltale sign of an impending recession -- remained relatively flat across the different districts.
Still concern remains - rate cut expected.
Inflation here in Korea, now at zero the data show, is causing concern that we might be headed for deflation. The government is planning an extra 2 billion dollars, roughly, of extra spending in the second half of this year. What are they hoping will happen, and do you think it'll work?
2.6 trillon won - only 0.15% of GDP
Not enough. Government debt as % of GDP only 40% level. More room for boosting available. But Ruling party vs. opposition party fight remains strong.
Rate cut needed. 1.5% interest rate with no inflation.
GDP growth rate 2.% lower than expectation of 2.1%. Lower than US 2.3% growth rate.
Clearly, more facility investment needed as well as government support of that spending.
Without any momentum, equity market rise can be limited.
Alright, Mr. Yoo. Thank you very much for your insights today, as always.
We appreciate it.