Reuters | Sep 16, 2020 02:24
* MSCI Asia ex-Japan +0.4%
* Nikkei inches higher as Suga voted PM
* European share futures point to lower open
* Yen hits two-week high, dollar treads water
By Andrew Galbraith
SHANGHAI, Sept 16 (Reuters) - Most Asian shares rose on Wednesday, extending a rally driven by upbeat Chinese and U.S. economic data, but investors showed little appetite for big bets as they awaited the Federal Reserve's view on the economy at its policy meeting.
Following robust industrial output and retail sales data from China and higher U.S. factory production investors are focusing on the Fed's policy statement due Wednesday, the first since Chair Jerome Powell announced an increased tolerance for higher inflation. risk is if we see no new developments since his Jackson Hole shoutout, this could have near-term pressure on yields ticking up, gold and precious metals complex lower, dollar higher and general risk-off in U.S. equities," said Kay Van-Petersen, global macro strategist at Saxo Capital Markets.
"If we do get a surprise on the accommodative side - we've gotten this a few times from smooth Jay (Powell) - then we could get the inverse of all that, including the next big structural break higher in gold."
The Fed is due to make its statement at 1800 GMT Wednesday, followed by a news conference from Powell.
However, Chinese blue-chips .CSI300 pulled back 0.62% as investors booked profits and as healthcare firms dragged on concerns over vaccine safety. Nikkei .N225 added 0.09% as Yoshihide Suga was voted in as the country's first new prime minister in nearly eight years, and readied a "continuity cabinet". Fed meeting comes as U.S. lawmakers remain at an impasse over a new stimulus package amid lingering concerns about the recovery of the world's largest economy from the coronavirus pandemic.
"There is some expectation that with the U.S. Congress unwilling/unable to agree to a new fiscal package, monetary policy may need to step in to fill the void," NAB analyst Tapas Strickland said in a note. "Accordingly markets will be focused on any changes to forward guidance and to any balance sheet adjustments."
The Bank of Japan and the Bank of England announce their respective policy decisions on Thursday.
E-mini futures for the S&P 500 EScv1 were up 0.06% on Wednesday after U.S. stocks ended off their session highs, with the Dow industrials closing little changed.
Separately, the World Trade Organization found on Tuesday that the United States had breached global trading rules by imposing multi-billion dollar tariffs in President Donald Trump's trade war with China, a ruling that drew anger from Washington. the currency market, the yen touched a two-week high of 105.23 per dollar JPY= as traders bet on a more accommodative Fed, and was last at 105.31.
The yield on benchmark 10-year Treasury notes US10YT=RR was at 0.674%, from Tuesday's close of 0.679%.
In contrast to the muted activity elsewhere, oil prices jumped as a hurricane disrupted U.S. offshore oil and gas production and as U.S. stockpiles fell. benchmark Brent crude LCOc1 rose 1.43% to $41.11 per barrel and U.S. West Texas Intermediate crude CLc1 jumped 1.65% to $38.91 a barrel.
Spot gold XAU= gained 0.2% to $1,959.72 per ounce. GOL/
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.