Asia report: Most markets higher as investors look to FOMC

Markets in Asia were mostly higher on Monday, with investors waiting patiently for a slew of monetary policy clues due later in the week.

USD/JPY

¥154.2260

03:22 19/11/24

-0.28%

-¥0.44

In Japan, markets were closed for a long weekend, as the yen weakened 0.48% against the dollar to last trade at JPY 111.36.

On the mainland, the Shanghai Composite was ahead 0.29% at 3,363.22, and the smaller, technology-centric Shenzhen Composite finished up 0.74% to 2,002.74.

South Korea’s Kospi added 1.35% to 2,418.21, while the Hang Seng Index in Hong Kong was ahead 1.27% to 28,159.77.

Technology stocks were the drivers of gains in Seoul, with Samsung Electronics surging 4.13% and SK Hynix ahead 3.24%.

Attention was turning stateside ahead of the Federal Open Market Committee’s two-day meeting, set to begin on Tuesday, with its decision on interest rate targets due on Thursday.

Most market watchers were not expecting a rate hike this month, although they were keen for clues on the timing of the next rate hike, as well as details on the unwinding of its mammoth balance sheet.

But some participants were less than impressed by the market’s reaction to the unwinding, with OANDA’s Asia-Pacific head of trading Stephen Innes noting that “draining the economy of cheap money can’t be viewed as a positive for markets accustomed to feeding off central bank largess.

“Why investors are so complacent is a mystery, but perhaps the reality check will set in midweek.”

Oil prices were higher during Asian trading, with Brent crude last up 0.36% at $55.82 and West Texas Intermediate ahead 0.66% at $50.22 per barrel.

In Australia, the S&P/ASX 200 was 0.45% higher at 5,720.60, with the hefty financials subindex rising 0.78%, and the consumer discretionary and energy sectors also finishing above the waterline.

Australia and New Zealand Banking Group issued a statement during the session, saying it would not be responding to press speculation over its divestment of Wealth Australia.

The bank said the process was “ongoing”, with its shares finishing up 1%.

Across the Tasman Sea in New Zealand, the S&P/NZX 50 was down 0.05% to 7,758.71, with local fuel producer New Zealand Refining falling 3.6%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.07% at AUD 1.2488 and the Kiwi advancing 0.13% to NZD 1.3684.