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Asian Traders Cautious ahead of the FOMC

asian, china, chinese, japan, koreanAsian markets were subdued this morning as Asian traders wait on the Federal Reserve. The FOMC it kicked off its March meeting, yesterday during North American trade hours. Gains in the region took cues from a move higher on Wall Street. This comes after a pounding seen earlier in the week.

In Hong Kong, the Hang Seng Index (HSI) was higher. Shares jumped 1.21 percent as technology, energy and property plays were all higher on the morning. Shares of index heavyweight Tencent were also up. They gained 1.84 percent ahead of its earnings release. This is scheduled for later in the day.

Mainland Chinese markets were also higher this morning. The Shanghai composite was up 0.48 percent and the Shenzhen composite was up 0.63 percent.

In South Korea, the Asian benchmark Kospi composite index was up by 0.08 percent. The smaller Kosdaq reversed early gains to fall 0.17 percent.

South Korea’s “Big Three” shipbuilders were mixed, this morning, after rising earlier in the trading session. Hyundai Heavy Industries jumped up 2.73 percent. Among the other major sectors, automakers were up while technology plays were mixed on the day.

Asian and Pacific Rim Indices are Cautious this Morning

Another regional benchmark, in Australia, the S&P ASX 200 was up 0.27 percent. Energy plays gained 1.4 percent. They were supported by oil prices. They rose to their highest levels in three weeks. Telecommunication and utilities plays were both lower this morning.

As mentioned above, the financial markets in Japan were closed for the vernal equinox.

Traders are waiting on the Federal Open Market Committee monetary policy and interest rate decision due out later in the day during North American trade hours. The Fed is expected to raise its Fed funds rate 25 basis points.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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