Forex Marketz Daily Forex News – Fully Markets Update
Asian and Pacific Rim indices were mixed on Wednesday. Asian traders are still concerned about the coronavirus outbreak and government response to stem the outbreak.
Shares in Hong Kong tumbled nearly two percent, after selling off by three percent at the open. Hong Kong financial markets reopened today after the Lunar New Year holiday break. Financial markets in China remain close for the holiday.
The Asian benchmark, in Japan, the Nikkei 225 was up 0.58 percent and shares on the broader Topix index, in Tokyo, added 0.34 percent by the afternoon.
In South Korea, the Kospi composite index was up about 0.64 percent by lunchtime.
In Hong Kong, the Hang Seng index pared back losses to trade down by 2.36 percent by noon time. Shares of airline, travel related stocks and insurers were plummeting on the day.
Ms. Carrie Lam, the leader of Hong Kong, declared an emergency regarding the coronavirus. She has extended school closings until February 17 and has cancelled all official visits to mainland China.
This viral outbreak is still spreading and has claimed over a hundred lives in China.
Ms. Lam has also announced a series of measures to limit Hong Kong’s connection with China in order to curb the spread of the virus. All flights and high speed trains to China from Hong Kong to Wuhan, in China, are suspended.
Asian Traders wait on the FOMC Monetary Policy and Rate Announcement
Today, traders will be watching the first monetary policy and rate decision from the U.S. Federal Reserve. This will happen later during the North American trade session. The Federal Reserve, through their monetary policy arm, the FOMC, is expected to stay neutral with their monetary policy. The Fed is also expected to keep their Fed Funds rate steady at 1.50 to 1.75 percent.
With that said, financial traders will pay close attention to commentary from Fed Chair Jerome Powell. They will also dissect the Federal Open Market Committee (FOMC) monetary policy statement for any change with forward guidance.
There are concerns that the outbreak of the coronavirus will have an economic impact on the Asian and Pacific Rim economies as travel to and from China is being restricted to prevent the spread of the virus.
