ASIA MARKETS: Asian Markets Press Pause Ahead Of Fed Announcement
September 19 2017 - 11:10PM
Dow Jones News
By Ese Erheriene
Nikkei flat after Tuesday's 2-year high; little fallout from
Trump's fiery speech
Equity trading across Asia was muted early Wednesday on caution
before the U.S. Federal Reserve's policy announcement.
After a solid start to the week, markets were treading water as
investors awaited monetary policy guidance from the Federal Open
Market Committee. Most investors aren't expecting interest rates to
rise.
Still, "it may not be such a 'paint-drying' meeting," said Rob
Carnell, head of Asia research at ING. Many analysts expect the Fed
to announce plans to unwind its $4.5 trillion balance sheet at the
conclusion of its meeting on Wednesday.
There is uncertainty about the pace of interest rate increases
over the next year, analysts say, based on the potential impact of
U.S. politics and economic data.
"Any change in the Fed's intentions are still important market
signals, and could be felt in asset prices," said Carnell.
South Korea's Kospi was off 0.1%, showing little reaction to
President Donald Trump's overnight speech at the United Nations in
which he threatened to "totally destroy" the Pyongyang regime and
called North Korean leader Kim Jong Un "Rocket Man."
Elsewhere, Japan's Nikkei Stock Average was flat, after closing
at a two-year high in the previous session, while the Shanghai
Composite Index was down 0.1% and Hong Kong's Hang Seng Index rose
0.1%.
Australia's S&P/ASX 200 was off 0.3% amid weakness in the
heavily-weighted financial sector. The country's big four banks
were down between 0.7% and 1%.
In New Zealand, the benchmark NZX-50 was nearly unchanged, ahead
of national elections this weekend that many polls suggest were too
close to call. Meanwhile, the New Zealand dollar was last up 0.3%
against the U.S. dollar.
"If there is no clear winner on Monday -- a highly likely
scenario -- negotiations between coalition partners will continue
for the following two weeks, and add to NZD volatility," said the
Commonwealth Bank of Australia in a note.
Oil prices were higher, rebounding on bullish inventory data.
Markets were also looking ahead to the big meeting Friday on the
production-cut deal led by the Organization of the Petroleum
Exporting Countries. November Nymex futures were up 0.8% at $49.86
a barrel, while Brent gained 0.5% to $55.39 a barrel.
(END) Dow Jones Newswires
September 19, 2017 22:55 ET (02:55 GMT)
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