Asian stocks started higher as the market anticipates FOMC meeting


Stocks across Asia started mostly on the positive territory on Tuesday’s opening bell as investors anticipate the September meeting from the U.S. Federal reserve for indications of future interest hikes in the stateside.

The market is currently keeping an eye on the upcoming Fed conference this month as the two-day monetary policy meeting from the Federal Open Market Committee starts this day. Investors are highly expecting the central bank to keep rates on their default levels, the moment it announces its verdict this coming September 20. They are also anticipating the details on how it will trim a $3.7 trillion in mortgage-backed securities and Treasury’s.

ANZ’s senior economist Felicity Emmett noted that expectations surrounding the looming meeting from the FOMC have been driving the U.S. currency, along with the stock markets focusing on any possible tweaks to the dot plot and Fed’s unwinding of balance sheet.

Looking on Asian indices, Japanese benchmark Nikkei 225 index rose as high as 1.44 percent as it resumes trading after the previous holiday. Exporters from the country touched some gains after the yen got surpassed by the dollar overnight. The Aussie benchmark ASX 200 index edged up by 0.13 percent as it was lifted by the 0.37 percent advance by financials sub-indexes.

However the Kospi index on South Korea didn’t go with the flow after marginally dropping by 0.08 percent on early trade. Samsung Electronics shed 0.99 percent.

Meanwhile markets on the mainland were also mostly higher. The Shenzhen Composite traded close flat line as it added 0.085 percent and the Shanghai Composite inched up by 0.09 percent. The Hang Seng index, however, slipped by 0.27 percent.


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