GLOBAL MARKETS – Asian stocks follow Wall Street higher ahead of Fed meeting

GLOBAL MARKETS - Asian stocks follow Wall Street higher ahead of Fed meeting

TOKYO / NEW YORK, March 16 (Reuters) – Asian stocks rose on Tuesday, following major Wall Street indexes advancing to record highs, as investors turned to major central bank meetings this week, to begin by the US Federal Reserve.

A stock market index in the region outside Japan rose 0.7%, led by the Australian benchmark S & P / ASX 200 to jump 1.2%.

Japan’s Nikkei 225 gained 0.6% just below the watchful 30,000 mark, while the larger Topix added 0.5%.

China’s blue-chip CSI 300 index climbed 0.7% and Hong Kong’s Hang Seng rose 0.7%.

On Monday, the S&P 500 and the Dow Jones Industrial Average both soared on travel inventory gains as mass vaccinations in the United States and Congress approve an aid bill of $ 1. $ 9 trillion fueled investor optimism.

S&P 500 E-mini futures edged up 0.06%.

Investors are focused on the two-day Fed policy meeting, which ends Wednesday, as bond yields have surged this year on investors betting central bankers will have to hike rates sooner than they do. have so far indicated to contain inflation. Fed policymakers should predict that the U.S. economy will experience the fastest growth in decades in 2021.

The Bank of England also meets this week on Thursday, while the Bank of Japan concludes a two-day meeting on Friday.

“The markets will probably be in a waiting situation before this … busy week in central banks,” write analysts at TD Securities.

On Wall Street, the Dow Jones Industrial Average rose 174.82 points, or 0.53%, to 32,953.46, the S&P 500 gained 25.6 points, or 0.65%, to 3,968.94 and the Nasdaq Composite added 139.84 points, or 1.05%, to 13,459.71.

Airlines shares rose as companies showed concrete signs of an industry recovery, with vaccine rollouts helping to boost leisure bookings.

Germany, France and Italy have paused on AstraZeneca COVID-19 fire after several countries reported possible serious side effects.

Development will be monitored in Australia, where the vaccine is also administered.

The pan-European STOXX 600 index was stable on Monday, after reaching its highest level since February 2020.

Yields on longer-term US Treasuries fell further on Tuesday, as the market anticipated the Fed meeting and the latest public debt auctions.

The benchmark 10-year yield, which peaked more than a year at 1.642% last week, fell to 1.595%

Rising inflation expectations could prompt the Federal Open Market Committee to signal that it will start raising rates sooner than expected.

On the currency front, the US dollar posted slight overnight gains to moderate price action ahead of central bank meetings.

The greenback was largely flat at 109.165 yen, having climbed to 109.365 on Monday for the first time since June.

The euro was little changed at $ 1.19320, languishing for an eighth session below the closely watched $ 1.20 level.

Bitcoin has continued to slide from a record high of $ 61,781.83 reached on Saturday, with the latest trading 3% lower on the day at around $ 53,915.

US West Texas Intermediate crude for April changed hands to $ 64.79 a barrel, down 60 cents. Brent futures for May stood at $ 68.21 a barrel, losing 67 cents.

Reporting by Kevin Buckland and Elizabeth Dilts Marshall; Editing by Cynthia Osterman and Jacqueline Wong


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