Asian Shares Mixed After USD Resurgence

Asian stocks are trading mixed after the US dollar recouped its losses following the Federal Reserve meeting on Wednesday.

The dollar had tumbled after the US central bank said economic growth had moderated, putting off a rate raise.

The stronger US currency and lower oil prices dragged energy and material stocks down on Wall Street.

Japan’s Nikkei 225 closed 0.4% higher at 19,560.22 points while the broader Topix added 0.3% to1,580.51.

In South Korea, the Kospi index shed 0.03% to end at 2,037.24.

“Markets believe that the Fed has substantially over-estimated the negative impact of the USD in its new forecasts,” Chang Weiliang at Mizuho wrote in a report.

Chinese stocks were falling after a survey showed business sentiment had worsened in March amid deflationary pressures and rising labour costs.

The MNI China Business Sentiment Indicator fell for the third consecutive month to 52.2 in March from 52.8 in February.

A figure above 50 indicates optimism. However, the latest reading showed confidence is at the lowest level since October last year.

Hong Kong’s Hang Seng index was 0.4% lower and the Shanghai Composite was down 0.3%.

In Australia, shares were higher, with the S&P/ASX 200 closed up 0.4% to 5,975.49 points.

via BBC

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