Asian Markets Surge Amid Policy Shifts and Fed Watch

Asian markets surge amid policy shifts. Investors await the Fed decisions. Nikkei hits 40,000 mark. Commodities show mixed trends. Global rates are stable.

Global Market Overview

• In Asian stock markets, while the Nikkei remained on holiday, the Shanghai Composite rose 0.55%, and the Hang Seng surged by 0.28%. However, the ASX experienced a slight dip of 0.10%.
• Commodity prices exhibited a mixed trend, with gold at $2159.5 (-0.26%), silver at $25.07 (-0.13%), Brent Oil at $87.13 (-0.26%), and WTI Oil at $82.4 (-0.26%).
• Regarding rates, the U.S. 10-year yield stood at 4.29%, the U.K. 10-year yield at 4.078%, and the Germany 10-year yield at 2.4415%.

News & Data

• In Canadian news, the CPI m/m figure was 0.3%, slightly below the expected 0.6%.

Market Updates

Asian-Pacific markets experienced a robust rally as investors digested significant shifts in monetary policies and awaited the U.S. Federal Reserve’s interest rate decision. The Bank of Japan’s historic move to raise interest rates for the first time in 17 years and scrap its yield curve control policy spurred the Nikkei to soar beyond the 40,000 mark. Meanwhile, the People’s Bank of China maintained its one- and five-year loan prime rates, crucial benchmarks for loans and mortgages.

Hong Kong’s Hang Seng index rebounded from earlier losses to climb by 0.60%, and the mainland Chinese CSI 300 also saw a rise of approximately 0.20% after an initial dip. However, Australia’s S&P/ASX 200 experienced a slight downturn of 0.1% following the central bank’s decision to keep rates steady for the third consecutive meeting.

Asian Markets Surge Amid Policy Shifts and Fed Watch

South Korea’s Kospi surged by 1.25%, buoyed by a significant uptick in heavyweight Samsung Electronics, while the smaller-cap Kosdaq increased by 0.08%. Japan’s Nikkei 225 remained closed for a public holiday.

In the United States, all three major indexes saw gains as the Federal Reserve commenced its two-day policy meeting. Despite expectations of unchanged rates, concerns over inflation prompted investors to watch for signals indicating prolonged elevated interest rates keenly.

The Dow Jones Industrial Average exhibited a robust performance, rising by 0.83%, marking its strongest showing since February 22. Similarly, the S&P 500 achieved a new record high, closing at 5,178.51, reflecting a 0.56% increase. The Nasdaq Composite also made modest gains, advancing by 0.39%.

Upcoming Events

The Federal Reserve is expected to make pivotal announcements at 6:00 PM GMT, including the Federal Funds Rate, FOMC Economic Projections, FOMC Statement, and FOMC Press Conference. Investors worldwide will closely monitor these events for insights into future monetary policy directions.

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