HONG KONG — Asian stocks were mixed Thursday as investor relief over a Deal on the U.S. borrowing limits was offset by uncertainty over the departure of a senior Fed official and lingering North Korean tensions.
FED IN FLUX: In a surprise announcement, the Federal Reserve said Vice Chairman Stanley Fischer will resign next month for personal reasons, leaving a fourth vacancy on the U.S. central bank’s seven-member governing board.
It plans to slowly raise interest rates as the U.S. economy grows and unemployment falls, even as inflation remains below target, complicating its future course.
Fischer’s resignation, the Debt deal and an unexpected rate hike by Canada’s central bank on strong economic growth “all caught market watchers by surprise,” he said.
The net positive of the deal with the Democrats in the U.S. to raise the debt limit was offset by continued uncertainty created by regional tensions around North Korean nuclear testing.
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