Asian Stocks Rise Ahead of FOMC

Asian stock markets mostly rose after US markets rebounded in anticipation of the Federal Reserve decision on interest rates.

The US central bank concludes its two-day meeting later and is expected to keep interest rates unchanged, despite mixed economic data.

In Australia, the benchmark S&P/ASX 200 closed 1% higher at 5,595.40 points.

The Kospi index in Seoul rebounded from an 11-week low, adding 0.3% to close at 2,034.86 points.
Hong Kong’s Hang Seng finished up 0.7% to 26,753.79, while the Shanghai Composite closed up 1.7% to 4,967.90, ending three days of losses.

Investors seemed to have recovered from the new curbs for margin lending and a flood of new listings this week that had dragged down shares.

On Wall Street, both the Dow and S&P 500 ended Tuesday about 0.6% higher and the technology-focused Nasdaq gained 0.5%.

Many analysts think the Fed might increase interest rates in September and will be watching chair Janet Yellen’s statements on Wednesday for further clues.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza