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Asian shares up after Fed lifts rates to tame inflation

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Asian shares up after Fed lifts rates to tame inflation

People wearing protective masks, amid the coronavirus disease (COVID-19) outbreak, are reflected on an electronic board displaying Japan’s stock prices outside a brokerage in Tokyo, Japan, October 5, 2021. REUTERS/Kim Kyung-Hoon

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SHANGHAI, June 16 (Reuters) – Asian stocks rose on Thursday, while longer-dated U.S. government bond yields fell and the dollar was down from two-decade highs after the U.S. Federal Reserve delivered an aggressive rate hike and cut its growth projections.

The U.S. central bank on Wednesday approved its biggest interest rate hike since 1994, lifting the target federal funds rate by 75 basis points to a range of between 1.5% and 1.75%. Fed officials also see further steady rises this year, targeting a federal funds rate of 3.4% by year-end. read more

The move, which had been fully priced in by markets, followed data on Friday showing a sharper-than-expected rise in U.S. inflation in May, as well as a University of Michigan survey showing consumers’ five-year inflation expectations jumping sharply to their highest since June 2008.

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In a news conference following the Fed’s latest two-day policy meeting, Fed Chair Jerome Powell said that the survey was “quite eye-catching”.

“(Inflation expectations) are starting to look like they’re too high. That I think is one reason why Powell wanted to do a 75 … And I think they will also go again in July,” said Joseph Capurso, head of international economics at Commonwealth Bank of Australia.

“They’ve got to get inflation down. They’re so far behind the curve it’s not funny.”

Investors appeared to take comfort from the view that the U.S. economy will benefit in the long run if prices are brought under control in the short term. Fed projections showed economic growth slowing to a below-trend rate of 1.7%, and policymakers expect to cut interest rates in 2024.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) tracked a higher close on Wall Street, adding 0.40% in the morning session. Seoul’s KOSPI (.KS11) added 1.24%, while Australian shares (.AXJO) rose 0.49% and Chinese blue-chips (.CSI300) added 0.12%.

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In Tokyo, the Nikkei (.N225) was up 1.70%.

Overnight, the Dow Jones Industrial Average (.DJI) ended the session by jumping 1%. The S&P 500 (.SPX) leapt 1.46%, and the Nasdaq Composite (.IXIC) climbed 2.5%.

The dollar, which retreated from a 20-year peak after the Fed meeting, regained some footing in the Asian session.

“It looked like a classic case of ‘buy the rumour, sell the fact’ as the dollar sold off and Wall Street rallied,” said Matt Simpson, senior market analyst at CityIndex. “(But) given the trajectory for Fed hikes … we very much doubt the top is in place for the U.S. dollar.”

The global dollar index , which tracks the greenback against a basket of six peers, was last up 0.24% at 105.05 as the dollar jumped nearly 0.6% against the yen to 134.61.

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The euro edged down about 0.1% to $1.0434.

Reflecting expectations for more Fed tightening, the yield on U.S. two-year Treasury notes, which are sensitive to traders’ expectations of Fed fund rates, rose to 3.3060% from a close of 3.2790% on Wednesday.

The U.S. 10-year yield was lower at 3.3696% from a close of 3.3950%.

In commodity markets, oil prices rebounded after falling more than 2% following the Fed decision. Brent crude was last up 1% to $119.68 per barrel and U.S. crude added 1.1% to $116.58.

Gold was slightly lower as the dollar firmed. Spot gold last traded at $1,830.19, down 0.17% on the day.

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Reporting by Andrew Galbraith; Editing by Lincoln Feast.

Our Standards: The Thomson Reuters Trust Principles.

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Gerrit Cole’s strong outing wasted in Yankees’ no-no loss

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Gerrit Cole’s strong outing wasted in Yankees’ no-no loss

This wasn’t what Gerrit Cole had in mind earlier in the week when he laughed at how being on the mound for a no-hitter has eluded him.

Cole spun a gem of a start Saturday, but wound up on the losing end because he shared the rubber with three Astros pitchers who combined on a no-hitter in a 3-0 victory over the Yankees. In a reminder of how cruel baseball can be, Cole twice took no-hitters into the middle of the game or beyond this week and wound up with a no-decision and a loss on his record (6-2).

“The cold hard truth is we got outpitched and outplayed,” Cole said. “Credit to the opponent. Magical day for them.”

Cole lost a no-hitter in the eighth inning Monday against the Rays, but the Yankees still won, which created a light moment when he joked he has never completed the job despite building a résumé with four All-Star selections and an ERA title. There was no such luck or levity Saturday when he would needed perfection — or better — to outduel Astros starter Cristian Javier and two relievers.

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Instead, Cole settled for striking out eight and scattering four hits over seven innings.

Gerrit Cole
Gerrit Cole
Robert Sabo

“Gerrit’s just going to keep doing that,” catcher Jose Trevino said. “That’s good for us in the long run.”

Cole walked two, but did not allow a hit until back-to-back, two-out singles by Jake Meyers and Martin Maldonado in the fifth inning. He survived that jam unharmed, but his 101st pitch was his big mistake in the seventh inning of a scoreless game.

J.J. Matijevic turned on a low-inside fastball and deposited it into the right-field seats for a homer as his reward for showing patience laying off a first pitch in the dirt. The rookie first baseman’s only two career hits have been solo home runs.

“I tried to make an adjustment and I obviously overcorrected and threw the pitch into an area that he was anticipating or he wasn’t going to be late on,” Cole said. “Not the side of the plate that we were trying to go to. It was honestly just a bad miss, but I don’t want to take any credit away from the guy who put a good swing on it.”

The solace is that Cole is pitching like an ace. He has allowed one run or fewer in five of his last six starts. Matijevic’s home run snapped Cole’s 21-inning scoreless streak at home.

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“Right away he was getting swing-and miss-with his heater, which was big while he was finding it those first two innings,” manager Aaron Boone said. “I thought his stuff was really good. Once he settled in, he was terrific.”

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4 wounded, including 8-year-old, in Brooklyn scooter shooting

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4 wounded, including 8-year-old, in Brooklyn scooter shooting

Four people were wounded — including an 8-year-old boy — in a scooter shooting in Brooklyn on Saturday night, police said.

Two men riding on a scooter pulled up around 11:30 p.m. to a large gathering of people in front of the Stuyvesant Gardens Houses on Quincy Street in Bedford-Stuyvesant and opened fire into the crowd, cops said.

An 8-year-old boy received a graze wound in the leg. A 27-year-old male, a 35-year-old female and a 46-year-old female were also each shot in the legs.

All four victims were transported to Kings County Hospital with non-life-threatening injuries, police said.

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The suspects fled on a green and white scooter in an unknown direction, according to police and sources.

Six shell casings and two live rounds were recovered at the scene, sources said.

The victims are all expected to survive.
The victims are all expected to survive.
Paul Martinka

No arrests have been made at this time as police continued to canvas the area early Sunday morning.

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Man arrested for attempted murder of LAPD officers amid Roe v. Wade protests

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Man arrested for attempted murder of LAPD officers amid Roe v. Wade protests

Police holding rubber-bullet guns and batons move to disperse a crowd of abortion rights activists protesting after the overturning of Roe Vs. Wade by the US Supreme Court, in Downtown Los Angeles, on June 24, 2022.
Police holding rubber-bullet guns and batons move to disperse a crowd of abortion rights activists protesting after the overturning of Roe Vs. Wade by the US Supreme Court, in Downtown Los Angeles, on June 24, 2022.
Photo by FREDERIC J. BROWN/AFP via Getty Images

A man was charged with attempted murder of Los Angeles police officers Friday night amid protests of the Roe v. Wade reversal, cops said.

A woman was also charged with resisting police after four officers were injured following a barrage of projectiles, fireworks and a makeshift blow torch, according to officials.

The mayhem unfolded around 8:20 p.m. in Downtown Los Angeles, the LAPD said.

Michael Ortiz, 30, is accused of throwing a makeshift flame thrower at an officer, who was treated for burns, according to a Saturday press release.

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Juliana Bernado, 23, allegedly attempted to steal an officer’s baton. A “less-lethal” bullet was fired at her, and she was taken into custody, police said.

“I condemn the violence against officers that occurred last night and into today,” Chief Michel Moore said.

“Individuals participating in such criminal activity are not exercising their 1st Amendment rights in protest of the Supreme Court decision, rather, they are acting as criminals.  

The Department will vigorously pursue prosecution of these individuals.”

Large scale protests in other cities large and small around the country were mostly peaceful.

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