Asia Stock market witnesses mixed trend on Wednesday

Syed Umarullah HussainiWeb Editor

16th Sep, 2020. 09:20 am
Asia Stock market

On Wednesday Asia Stock market witnessed a mixed trend, as investors awaited the Federal Reserve’s view on the economy at the end of its policy meeting.

According to the details, after the global equities rallied on Tuesday the data of China’s industrial output and retail sales showed a rise, and later on, US factory productions also increased.

Australian S&P/ASX 200 futures rose 0.75% in early trading.

Japan’s Nikkei 225 futures slid 0.13%.

Hong Kong’s Hang Seng index futures rose 0.33%.

E-mini futures for the S&P 500 slipped 0.01%.

Commodity-linked currencies such as the Australian, New Zealand, and Canadian dollars gained after the positive Chinese data.

But with U.S. lawmakers at a stand-off over a new stimulus package, concerns about the economic recovery remained and the attention of investors shifted to a two-day U.S. Federal Reserve meeting, that started on Tuesday.

Analysts are of the view that “There is some expectation that with the U.S. Congress unwilling and unable to agree to a new fiscal package, monetary policy may need to step in to fill the void,”

“Accordingly markets will be focused on any changes to forwarding guidance and to any balance sheet adjustments.”

Furthermore, the Bank of Japan and the Bank of England announce their respective policy decisions on Thursday.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.65% higher on Tuesday.

U.S. stocks ended off their session highs, with the Dow industrials closing little changed.

Apple Inc retraced earlier gains after its product event, which included the roll-out of a new virtual service and a bundle of its subscriptions into Apple One.

The stock, which often edges down after a run-up prior to the event, closed up 0.2%.

The S&P 500 gained 0.52% while the tech-heavy Nasdaq Composite rose 1.21%.

The United States (U.S) retail sales figures from August will also be in focus on Wednesday (today)

Separately, the World Trade Organization found that the United States had breached global trading rules by imposing multi-million dollar tariffs in the United States President Donald Trump’s trade war with China.

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