Asian stocks follow Wall Street higher ahead of Fed meeting By Reuters
By Kevin Buckland and Elizabeth Dilts Marshall
TOKYO / NEW YORK (Reuters) – Asian stocks rose on Tuesday, following major Wall Street indexes advancing to record highs, as investors turned to major central bank meetings this week, starting with the Reserve federal government.
A stock market index for the region excluding Japan rose 0.7%, led by a 1.2% jump in the Australian benchmark.
225 gained 0.6% just below the closely watched 30,000 mark, while the broadest added 0.5%.
China’s blue-chip CSI 300 index climbed 0.7% and Hong Kong’s 0.7%.
The and the two soared on gains in travel inventories on Monday as mass vaccinations in the United States and congressional approval of a $ 1.9 trillion aid bill fueled investor optimism.
S&P 500 E-mini futures edged up 0.06%.
Investors are focusing on the two-day Fed policy meeting, which ends Wednesday, as bond yields have surged this year on investors betting central bankers will have to hike rates sooner than they do. have so far indicated to contain inflation. Fed policymakers should predict that the U.S. economy will experience the fastest growth in decades in 2021.
The Bank of England also meets this week on Thursday, while the Bank of Japan concludes a two-day meeting on Friday.
“The markets should remain in a waiting situation before this … busy week by central banks,” write analysts at TD Securities.
On Wall Street, the Dow Jones Industrial Average rose 174.82 points, or 0.53%, to 32,953.46, the S&P 500 gained 25.6 points, or 0.65%, to 3,968.94 and the additional 139.84 points, or 1.05%, to 13,459.71.
Airlines shares rose as companies showed concrete signs of an industry recovery, with vaccine rollouts helping to boost leisure bookings.
Germany, France and Italy have paused on AstraZeneca (NASDAQ 🙂 COVID-19 fire after several countries reported possible serious side effects.
Development will be monitored in Australia, where the vaccine is also administered.
The pan-European index was stable on Monday, after hitting its highest level since February 2020.
Yields on longer-term US Treasuries fell further on Tuesday, as the market anticipated the Fed meeting and the latest public debt auctions.
The benchmark 10-year yield, which peaked more than a year at 1.642% last week, fell to 1.595%
Rising inflation expectations could prompt the Federal Open Market Committee to signal that it will start raising rates sooner than expected.
On the currency front, the US dollar posted slight overnight gains to moderate price action ahead of central bank meetings.
The greenback was largely flat at 109.165 yen, having climbed to 109.365 on Monday for the first time since June.
The euro was little changed at $ 1.19320, languishing for an eighth session below the closely watched $ 1.20 level.
continued its slide from a record high of $ 61,781.83 reached on Saturday, last trading 3% lower on the day at around $ 53,915.
US West Texas Intermediate crude for April changed hands to $ 64.79 a barrel, down 60 cents. futures contracts for May were $ 68.21 a barrel, losing 67 cents.