Morning MoneyBeat Asia: U.S.Stocks Rally as Fed Plays Santa with Policy

        By Paul Vigna
        Market Snap: At the New York close: S&P 500 up 2% at 2012.89. DJIA up 1.7% at 17356.87. Nasdaq Comp up 2.1% at 4644.31. Treasury yields rose; 10-year at 2.146%. Nymex crude oil up 1% at $56.47. Gold up 0.03% at $1,194.30/ounce.
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        How We Got Here: U.S. stocks surged after the Federal Reserve released a policy statement that sounded awfully dovish, albeit the bottom line for the timing of any rate hikes remains the state of the economy.
        The Fed kept the phrase "considerable time" in its policy statement. It also inserted a new phrasing, saying it could be "patient" in undertaking any hikes. There had been some speculation that a word like patient might replace "considerable time," so the inclusion of both was taking as a doubly dovish sign.
        But the Fed also reiterated its optimism about the economy, and said it thinks the effects of oil's collapse on inflation would be transitory, and its effect on the economy would be positive. The bank's members, moreover, all expect a rate hike in 2015, leaving many to conclude the statement was simply confusing.
        "The FOMC doesn't want to be the Grinch that stole Christmas," Societe Generale forex analyst Kit Juckes wrote, "and wants more policy freedom, but the bottom line is that rates go up next year barring surprises."
        For the Dow, it was the biggest one-day gain since almost exactly a year ago, Dec. 13, 2013. Still, the index is down 2.6% in December, and up 4.7% on the year.
        Notably, for the small-cap Russell 2000, it was the biggest one day point and percentage gain since 2011.
        Coming Up: In a light day for data releases in Asia on Thursday, China reports new homes price data for November. The average price of new homes in 70 Chinese cities fell in October, the sixth straight month-on-month decline, but at a slower pace as some home buyers returned to the market after Beijing eased mortgage rules. Many investors are concerned that a prolonged property slump could further erode growth in the world's second-largest economy.
        What You Missed Overnight
        Fed Sticks to Patient Tack on Rates Federal Reserve officials took a delicate step toward raising short-term interest rates in 2015, introducing language into their policy statement that asserted they would be patient about moving away from near-zero short-term interest rates.
        Obama Announces Moves to Normalize Cuba Ties President Barack Obama said Wednesday that the U.S. would end what he called an outdated approach to Cuba, beginning to normalize relations and establishing diplomatic ties after five decades of restrictions.
        Theater Chains Cancel Sony's 'The Interview' The largest theater chains in the U.S. have decided not to play Sony Pictures' controversial comedy "The Interview" on its planned Dec. 25 opening, amid terrorist threats, said two people with knowledge of the matter.
        Ruble Volatile Despite Intervention Russia's battered ruble recovered some of its recent losses against the dollar on Wednesday as the market welcomed measures by the Bank of Russia to shore up the country's banks, and the Finance Ministry said it would start selling its excess foreign currency holdings.
        From The Wall Street Journal Asia
        Asian Consumers See Little Trickle-Down From Cheaper Oil The economic boost from falling global oil prices is being blunted in Asia as governments in the region use the decline to boost state coffers instead of passing savings on to consumers through cheaper gasoline.
        Taliban Attack Reflects Barbarity Competition Among Jihadists It's tempting to dismiss the people who plan in cold blood the execution of 132 schoolchildren as sick, twisted minds beyond the pale of human comprehension.
        Chinese President to Visit Macau, Where Stakes Are High When Chinese President Xi Jinping visits Macau on Friday for the 15th anniversary of its return to China, he will see firsthand the impact of his anticorruption drive.
        SpiceJet Flights Disrupted by Cash Woes SpiceJet canceled flights Wednesday morning as the cash-strapped budget airline struggled to pay for fuel, triggering a selloff of the Indian company's shares and further damaging its reputation.
        From MoneyBeat
        U.S. Stocks Surge After Fed Gets Dovish on Policy U.S. stocks are surging, with the Dow Jones Industrial Average briefly up more than 300 points, after the Federal Reserve issued an especially dovish policy statement at the conclusion of the FOMC meeting.
        Cuba Fund Soars on Normalization Talks President Obama says that the U.S. will begin talks with Cuba to normalize relations, and a tiny closed-end mutual fund with the ticker "CUBA" is having the day of its life.
        On Deck Capital Pops as Investors Keep Betting on Alt. Lenders Investors may be spooked about the Russian ruble, falling oil prices, and junk bonds, but none of those worries seem to have dimmed the market's enthusiasm for the alternative lending industry.
        Cuba (the Energy Drink Company) Soars 140% on Cuba (the Country) News Shares of Cuba Beverage, an energy-drink company with sales of $9,961 last quarter, are soaring Wednesday in what appears to be the latest example of a company's stock being affected by news events that are completely unrelated to its business.
        (END) Dow Jones Newswires

        December 17, 2014 19:02 ET (00:02 GMT)

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