The logo of the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), is displayed at the Tokyo Stock Exchange, Japan, on Friday, October 1. 2, 2020.
Akio Kon | Bloomberg via Getty Images
SINGAPORE — Markets in Asia-Pacific traded lower on Monday as investors anticipated the U.S. Federal Reserve’s monetary policy meeting this week.
from Japan Nikki 225 was down 1% in early trading while the Topix index was down 0.98%. In South Korea, the Kospi was down 0.47%.
In Australia, the ASX 200 fell 0.38%. The energy, materials and financials sub-indices fell 0.85%, 1.08% and 0.38%, respectively, as major banks, mining companies and oil stocks fell. sold. Shares of Commonwealth Bank, however, rose 0.43%.
Last Friday, stocks sold off globally. In the US, the tech-heavy Nasdaq Composite posted a 7.6% loss for the week, its worst since October 2020, and also more than 14% below its record close in November.
The Federal Open Market Committee is had to meet Tuesday and Wednesday to decide the next steps for US monetary policy.
Rising inflation is a major concern for the US central bank and investors will listen carefully to find out how worried the Fed really is – President Jérôme Powell is due to brief the media on Wednesday followingnoon local time following the FOMC statement is released.
“Markets traded cautiously ahead of this week’s FOMC statement, which is expected to be hawkish and potentially lay out the case for an interest rate hike from March,” the ANZ analysts wrote. Research in a Monday morning note.
They said they doubted the Fed would end quantitative easing this week as some in the market speculate.
“We also doubt the Fed will begin to tighten policy with a 50 basis point rate hike. Markets might stabilize if the Fed isn’t as hawkish as some of the worst fears suggest,” the ANZ analysts added.
In the foreign exchange market, the American dollars traded near flat at 95.685 once morest a basket of peers.
the japanese yen changed hands at 113.76 to the dollar, strengthening from levels above 114.8 the previous week. the dollars australia was little changed at $0.7180.
Oil prices rose during Asian trading hours on Monday: American crude rose 0.8% to $85.82 a barrel.
U.S. crude and global benchmark Brent both rose for the fifth straight week last week, gaining around 2% for the week, Archyde.com reported. Prices have increased by more than 10% this year due to supply problems.
