Most Asian stocks declined on Tuesday amid ongoing concerns about the upcoming Federal Reserve meeting, while Japan’s Nikkei index trimmed early losses after the Bank of Japan raised interest rates.
Expectations of potential hawkish signals from the Federal Reserve remained a major market concern. The bank is expected to keep interest rates unchanged on Wednesday, but may become more hawkish in the face of persistent inflation. The Nikkei 225 index rose by 0.3%, while the broader Topix index jumped by 0.6% after recovering most of its previous losses.
The Bank of Japan raised interest rates by 0.1% in a first-of-its-kind move in 17 years, also signaling the end of yield curve control policies, especially its asset purchases from open markets. However, the central bank still indicates that Japanese monetary conditions will largely remain accommodative amid ongoing concerns about the weakness of the Japanese economy.
Other regional central bank meetings yielded positive results as well. After the Reserve Bank of Australia kept interest rates steady, the ASX 200 index rose by 0.3%. Additionally, the People’s Bank of China is expected to announce its decision on the key loan prime rate this week, with expectations that the PBOC will keep interest rates unchanged on Wednesday.
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Shady Fouad is a technical analyst at LDN Company
Shady's strategic vision in the currency markets is reinforced by more than fifteen years of trading experience, which enables him to blend economic and technical analyzes with high efficiency, and find the best investment ideas for traders.
