Asian markets swung in and out of positive territory on Wednesday as investors brushed off another record close on Wall Street and looked ahead of the Federal Reserve’s latest policy meeting.
The Dow and S&P 500 clocked up another day of all-time highs, lifted by financials ahead of an expected interest rate hike by the Fed, while there were also signs that much-anticipated tax cuts were moving closer.
Bloomberg News reported Republican senators as saying lawmakers in both houses of congress were making progress in reconciling two tax reform bills and a final draft could be agreed imminently and it could go to a vote by next Tuesday.
Bets on the market-friendly tax cuts being introduced helped drive a surge in global markets this year and while equities have stuttered in recent weeks analysts suggested more gains could come.
“Apparently, the bull market has ways to run despite 2017 froth as tax cuts are expected to extend the current rally shelf life,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
However, Asian dealers were unable to take up the baton from New York and by the break Tokyo was down 0.3 percent, Shanghai was marginally down and Singapore shed 0.3 percent.
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