Asian Shares trade higher; Fed cut interest rates
Asian Shares edged up on Tuesday afternoon, as investors await closely-watched central bank meetings in the coming days. There are expectations that the European Central Bank and Federal Reserve will cut interest rates.
“The likelihood of easing by the Fed is supportive for equity markets, but the probability of a 25 basis point rate cut has already been factored in for the most part,” said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management.
- MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.15%.
- Japan’s Nikkei rose 0.95%.
- The Shanghai Composite Index advanced 0.2%.
- Australian stocks gained 0.4% and South Korea’s KOSPI edged up 0.45%.
- The S&P 500 edged up toward a record high overnight, due to the expectations taht Federal Reserve would reduce interest rates.
- The dollar index against a basket of six major currencies rose 0.15% to 97.380, helped by a rise in U.S. yields.
- The greenback gained 0.15% to 108.040 yen.
- The euro dipped 0.1% to $1.1197 weighed by the possibility of easing by the ECB.
- The New Zealand dollar slipped 0.3% to $0.6739,
Brent crude added 0.08% to $63.31 per barrel after rising 1.2% the previous day.