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

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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