Asian Stocks Look Subdued as Investors Await Fed
Asian stocks are poised for a sluggish start following a tepid Wall Street session, as investors held back ahead of Wednesday’s Federal Reserve interest-rate decision.
Equity-index futures signaled modest losses in Sydney and Tokyo, though Hong Kong looked set to open higher, after the S&P 500 slipped 0.1% and the Nasdaq 100 ended a nine-day winning streak. Gold briefly topped $3,700 an ounce, buoyed by a softer US dollar that fell to its weakest level in more than 10 weeks.
Attention in Asia will also be on a 20-year government bond auction in Japan as political uncertainty and lingering fiscal risks keep longer-dated debt under pressure.
A solid reading on US retail sales Tuesday did little to sway markets, with attention firmly on the Fed meeting. Investors are looking for clues on the path of interest rates that will shape the market outlook in the months ahead, with some bond traders stepping up options wagers that the central bank will deliver at least one half-point cut.
“The American consumer appears to be in good spirits,” said Ellen Zentner at Morgan Stanley Wealth Management. “That’s good news for the economy, but it may heighten debate over how aggressively the Fed needs to cut rates.”
Source: Bloomberg.com
