Asian Equities Expected Lower

Asian shares are bracing for a lower open on Wednesday, following a negative finish on Wall Street.  Japan’s Nikkei 225 will likely suffer losses after stock futures in Osaka and Chicago traded at 18,700 and 18,750, both lower than the index’s previous close of 18,815.

Australian shares could nudge lower, reeling from the impact of the Reserve Bank of Australia’s decision to hold interest rates steady on Tuesday. Futures notched down 0.2 percent to 5,910, a 23-point discount to the underlying S&P ASX 200 index. Meanwhile, the Australian dollar continued its rally against the dollar. It last traded at $0.7812, but analysts expect gains to be short-lived.

“A technical resistance is seen around $0.7915. Moreover, given that markets will likely push back expectations of easing rather than remove such expectations, any gains will likely be short-lived,” said Mitul Kotecha, head of Asia-Pacific currency strategy at Barclays.


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