Asian Stocks Were Subdued Ahead Of The Federal Reserve’s Policy Statement

Asian Stocks Siubdued www.purnartha.comAsian stocks were subdued on Wednesday as a wait-and-see mood prevailed ahead of the Federal Reserve’s policy statement due later, and with sentiment fragile after a rout in Chinese shares the previous day. MSCI’s broadest index of Asia-Pacific shares outside Japan stood effectively unchanged after shedding 1.2 percent on Tuesday. Australian shares were down 0.3 percent. Asia failed to draw much support from an overnight bounce on Wall Street, where upbeat earnings results and a bounce in crude oil pushed up the Dow 1.8 percent and the S&P 500 1.4 percent, with Tuesday’s six percent tumble in Chinese shares keeping investors wary. “The Fed’s assessment of international developments and the implications for the U.S. economy and financial markets should be focus for discussion,” wrote Sean Callow, senior currency strategist at Westpac in Sydney. “With only a short statement, we expect the Fed to repeat that normalization will proceed as data allows in 2016, though markets will be watching for any shift to a more dovish stance.”

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