Asia report: Most markets higher as Fed decision nears
Markets in Asia were mostly higher on Tuesday, as traders once again turned their attentions stateside ahead of the Federal Reserve’s policy meeting for March next week, where expectations were rising that interest rates would be on their way up.
In Japan, the Nikkei 225 was in the red, losing 0.18% to 19,344.15, as the yen weakened against the greenback.
It was last off 0.04% at JPY 113.94 per $1.
On the mainland, the Shanghai Composite was up 0.27% at 3,242.63, and the Shenzhen Composite was 0.3% higher at 2,031.63.
South Korea’s Kospi finished up 0.61% at 2,094.05, and Hong Kong’s Hang Seng Index was 0.36% higher at 23,681.07.
In Seoul, the office of the special prosecutor reported findings that impeached President Park Geun-hye colluded with a close friend to accept bribes from the Samsung Group.
The bribes were reportedly to help shore up Jay Lee’s control of the corporate behemoth, formed of a number of different groups with varying ownership structures.
South Korea’s Constitutional Court was expected to make a decision on whether Park’s impeachment would stand imminently, with Jay Lee due to take the stand on charges of embezzlement and bribery on Thursday.
During Asian hours, expectations for a rate hike from the Federal Reserve in the US were sitting at 86.4%, according to CME Group’s Fed Watch.
Fresh data fuelled the expectations, with US factory orders rising 1.2% month-on-month and durable goods improving 2% - both figures were ahead of market expectations.
“Better-than-expected numbers led the market to believe that the Fed will have more reason to raise the interest rate in the FOMC meeting next week,” noted CMC Markets market analyst Margaret Yang.
Oil prices were lower during Asian trading, though they began to bounce back during early European hours, with Brent crude last up 0.2% at $56.12 per barrel and West Texas Intermediate adding 0.24% to $53.33.
In Australia, the S&P/ASX 200 spluttered towards a positive finish, adding 0.26% to 5,761.39, as the Reserve Bank of Australia satiated market expectations and stood pat on the country’s official cash rate at 1.5%.
“The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia's national income,” said central bank governor Philip Lowe in his statement.
New Zealand’s S&P/NZX 50 was in the red, falling 0.2% to 7,167.64, led lower by broadband infrastructure network Chorus, which lost 2%.
Chicken producer Tegel Group was unchanged, as it stood on the receiving end of a warning from the Commerce Commission regulator over misleading consumers about chicken sizes.
The company, alongside rival Inghams Enterprises, was told including stuffing and marinade in the weight of the chickens on the packaging was likely to have been misleading.
It was a mixed day for the down under dollars, with the Kiwi last 0.08% weaker against the greenback at NZD 1.4309, and the Aussie strengthening 0.21% to AUD 1.3164 per $1.