Pedestrians are shown in a window as they walk past an electronic stock board at the ASX Ltd exchange center. in Sydney, Australia, on Thursday, February 14, 2019.
David Moir Bloomberg | Getty Images
SINGAPORE – Asia-Pacific markets traded mixed Wednesday as investors await the outcome of a two-day U.S. Federal Reserve policy meeting later in the day.
Australian shares made up the loss as the ASX 200 fell 0.82%, with most sectors trading lower. The energy and materials subindexes declined 1.5% and 1.42%, respectively as oil and mining stocks in general struggled for gains. Rio Tinto and BHP miners were down 1.44% and 1.53%.
The Nikkei 225 in Japan was trading near flat while the Topix index was slightly lower. South Korea’s Kospi also extended losses, falling 0.86%.
Shares of mainland China were mixed: Shanghai stock was near flat but Shenzhen’s share traded up 1.08%. Elsewhere, the Hong Kong Hang Seng index yields a 0.29% gain.
That was followed by an overnight session where the Dow Jones industrial average lost nearly 130 points, breaking a seven-day winning streak.
A Federal Open Market Committee policy meeting will be at a high level, according to Carol Kong, a strategic at the Commonwealth Bank of Australia.
She explained in a morning note that both U.S. bond yields and the dollar could jump if the Fed’s post-meeting statement and Chairman Jerome Powell’s comments are not sufficiently appreciated. “We do not expect the FOMC to be concerned about or even note the increase in bond yields in the statement after their meeting. The yield on bonds is no higher than a barrier to economic recovery. USA, “she wrote.
“We expect Chairman Powell to note that the FOMC has the tools to intervene if the bond market becomes chaotic or prevents re-entry. economic recovery, “Kong said, adding that the Australian bank also expects the Fed to update its GDP and inflation forecasts as a result of the spread of the vaccine and fiscal stimulus.
Money and oil
In the currency market, the U.S. dollar traded near a flat at 91.926 against a basket of its peers, rising from an earlier level at 91.856. The index has remained relatively broad this week as it tries to break the 92 level again.
The Japanese yen changed hands at 109.1 per dollar, strengthening from near 109.20 levels reached in previous sessions. The Australian dollar slipped 0.14% to $ 0.7734.
Oil prices lost their momentum on Wednesday during Asian trading hours, reversing earlier gains. U.S. crude declined 0.12% to $ 64.72 a barrel while international benchmark Brent fell 0.19% to $ 68.26.
Overnight, prices fell as traders worried about a recovery in fuel demand after major European countries stopped the use of the vital Covid-19 vaccine from Oxford University and drug dealer AstraZeneca, which meant that economic recovery from the crisis could be delayed by a pandemic.
Experts have warned that the ban could have serious side effects.
“Crude oil fell as the market moves beyond the global recovery in demand,” analysts at ANZ Research said in a morning note. “Growing demand has emerged in India and the US in recent months, but Europe remains weak.”
“Concerns that demand may fall further have been raised as European health ministers block the rollout of the AstraZeneca vaccine amid health concerns,” the researchers said.