NEWS / Foreign Exchange

Stocks Race to New Peak after FED Rate Cut

Asian stocks rose to fresh peak on Thursday while the dollar struggled after the Federal Reserve cut U.S. interest rates to buffer the world's biggest economy from a housing slump. Tokyo's Nikkei average had risen nearly 0.8 %.

MSCI's measure of other Asia Pacific stocks advanced 0.7 %. The MSCI index hit a life high of 591.48, surpassing the previous peak of 582.22 set on Oct. 29, bringing total gains this year to nearly 50 %.

Oil Leaps to USD 96 High on U.S. Inventory Drop

Oil leaped nearly 2 % to top USD 96 for the first time on Thursday, extending the previous day's 5 % surge after an unexpected sharp fall in U.S. crude stocks and data showing strong economic growth. U.S. oil for December delivery rose as high as USD 96.24 a barrel in electronic trade. December Brent crude also hit its record high of USD 91.63, up USD 1 on the day.

Australians Spending Freely

Australian retail sales easily outpaced expectations in September, setting the seal on a very strong quarter for consumption andadding to an already compelling case for a further rise in interest rates.

Thursday's government data showed sales rose 0.8 % in September, when analysts had looked for a 0.5 % gain. For the three months to September sales climbed 1.9 % to Australian dollar 56.7 billion (USD 53 billion) in inflation-adjusted dollars, again topping forecasts of a 1.6 % jump. That strength underpinned the Australian dollar near 23- year highs.