Asian Stocks Levitate as Fed's Repo Bonanza Continues – CCN.com, Crypto Coins News

                                                                     

                        

Asian stocks rose on Friday, with Japan’s benchmark index reaching new five-month highs amid reports that the Federal Reserve was pledging more liquidity to prop up the financial markets.

Asian Markets Rise

Stocks across the Asia-Pacific region rose in the final session of the week. Tokyo’s benchmark Nikkei rallied 0.4% and was on track for its highest settlement since late April. The Nikkei is up 6.9% over the past month and 10. 6% since the start of 2019.

Mainland China’s CSI 300 Index rose 0.2%. The benchmark Shanghai Composite Index also rose 0.2%. In Hong Kong, the Hang Seng Index rallied 0.3%.

The ASX 200 Index, Australia’s primary equities benchmark, was up 0.6% midday.

Fed Carries Out Third Repo Operation; Plans Fourth

TheFederal Reservestepped into the financial markets again on Thursday in another desperate attempt to keep short-term interest rates from rocketing higher.

For a third straight day, the New York Federal Reserve Bank conducted a repurchase operation to ensure local banks have enough liquidity to finance their day-to-day operations. The Thursdayrepo operationwas valued at $ 75 billion, matching Wednesday’s level and much higher than the $ 53 billion pledged on Tuesday. All said, the U.S. central bank has injected $ 203 billion into the markets this week.

Anthony Pompliano, a renowned bitcoin bull and opponent of central-banking,tweetedlate Thursday that the New York Fed was planning a fourth repo operation on Friday worth $ 75 Billion.

“That will be more than $ 275 billion total in four days this week, “he said.

UPDATE: The NY Fed is planning to inject another $ 75 billion into the financial system on Friday (tomorrow). *****

That will be more than $ 275 billion total in four days this week.

Add in the two recent rate cuts & you could argue that the Fed is fighting the start of a recession …

– Pomp @ (@APompliano)September 19, 2019

Prior to this week, the Fed’s last repo operations came in the aftermath of the 2008 – 09 Financial crisis.

U.S. Stock Futures Edge Higher

Futures on U.S. equities traded slightly higher on Friday, pointing to a modest start to the New York session.Dow Jones Industrial Average (DJIA) (futures were up) points, or 0.1%.S&P 500 futuresadvanced 0.1%. The Nasdaq 100 mini futures contract was also up 0.2%.

 

Last modified (UTC): September 20, 2019 2: AM