Asian stocks rise first time in three days before Fed decision
Asian stocks rose for the first time in three days as investors awaited a Federal Reserve decision on US monetary policy
Sydney: Asian stocks rose for the first time in three days, following US shares higher, as investors awaited a Federal Reserve decision on US monetary policy.
The MSCI Asia Pacific Index gained 0.2% to 146.63 as of 9:02am in Tokyo. The measure slipped 1.2% in the previous two days as European policy makers urged Greece to make the concessions needed to unlock bailout aid ahead of Thursday’s meeting of euro-area finance ministers.
The Fed concludes its two-day policy meeting on Wednesday, amid speculation that mixed US economic data and the deadlock over Greece may complicate the central bank’s drive to increase interest rates. Greece’s prime minister accused the International Monetary Fund (IMF) of “criminal" responsibility for the indebted nation’s situation.
“Yellen is unlikely to come across as overly hawkish given the Greek situation," said Shane Oliver, the head of investment strategy at AMP Capital Investors Ltd in Sydney, which manages about $124 billion. “The markets had become a bit oversold. The bull market is still alive and well."
Japan’s Topix index added 0.3%. South Korea’s Kospi index rose 0.2%. Australia’s S&P/ASX 200 Index gained 0.3% and New Zealand’s NZX 50 Index slid 0.1%.
Futures on the Hang Seng Index rose 0.3% in most recent trading, while contracts on the Hang Seng China Enterprises Index gained 0.4%.
E-mini futures on the Standard and Poor’s 500 Index were little changed after the underlying gauge advanced 0.6% on Tuesday.
The Fed meets as data continue to show uneven gains in the US economy after a first-quarter slowdown. Traders are now putting odds of a September rate hike at 47%, down from 53% as recently as Friday, data compiled by Bloomberg show. Fed chair Janet Yellen may provide further clues at a press conference on Wednesday. Bloomberg
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