The signage of the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), is shown on Friday, October 2, 2020 on the outside of the Tokyo Stock Exchange, Japan.
Akio Kon | Bloomberg via Getty Images
SINGAPORE – Asia-Pacific markets traded on Monday ahead of this week’s Federal Reserve meeting in the state.
Australian stocks reduced some losses as the ASX 200 benchmark traded near the flat. The energy sector gained 0.75%, while the materials sector fell 1.19%. The heavily weighted financial sub-index recovered losses to 0.29%.
Japanese markets rose, with the Nikkei 225 rising 0.3%, while the Topix index added 0.45%.
Technology giant Rakuten jumped nearly 20 percent after the company said Friday it would issue new shares to raise $ 2.2 billion in capital to compete with its U.S. rivals. Japan Post is expected to take an 8.3% stake in Rakuten, while China’s Tencent will take 3.6% and US retail giant Walmart 0.9%.
In South Korea, the Kospi faltered between gains and losses: the benchmark fell 0.08%.
The Federal Open Markets Committee is due to meet on March 16 and 17, and some analysts expect the US central bank to revise its GDP forecast, following a $ 1.9 trillion fiscal stimulus package. of dollars that will send direct payments of up to $ 1,400 to most Americans.
“Some FOMC members might think rates will have to rise sooner than they had predicted last December,” analysts at ANZ Research wrote in a note in the morning.
“For the Fed, the solid recovery and any momentary change in the points plot profile will raise communication challenges as long as rates remain low,” analysts said.
Each quarter, FOMC members predict where interest rates will go in the short, medium and long term. These projections are represented visually in graphs and are called point graphs.
Fed Chairman Jerome Powell “is likely to link the path of rates to a comprehensive economic improvement, while emphasizing tolerance for moderate inflation,” ANZ analysts added.
Coins and oils
In the foreign exchange market, the US dollar traded near the flat at 91.630 against a basket of its peers, falling from levels above 92.00 last week.
The Japanese yen weakened to 109, trading at 109.04 against the green dollar compared to an earlier high of around 108.97. Meanwhile, the Australian dollar changed hands at $ 0.7767, moving from an earlier level of around $ 0.7737.
Oil prices rose on Monday during Asian trading hours, due to growing optimism about the recovery in demand. US crude rose 0.37% to $ 65.85 a barrel.