Rosalind Evans
Asian shares experienced an upswing on Wednesday following Wall Street’s gains, as investors eagerly anticipate the Federal Reserve’s decision on interest rates and updates on the U.S. economy’s current state. “The overwhelming expectation is that the Fed will keep its overnight interest rate steady. The bigger question is how long it will keep that main rate high,” the article outlines, reflecting the prevailing sentiment among investors.
In Asia, the Tokyo Nikkei 225 index rose by 2.1% to 31,515.94, following the Bank of Japan’s decision to retain its near-zero interest rate policy, albeit with some adjustments to its controls on government bond yields. Concurrently, the dollar weakened against the Japanese yen, trading at 151.27 yen. The Hang Seng index in Hong Kong saw a slight increase of less than 0.1%, reaching 17,119.12, while the Shanghai Composite index in China gained 0.2%, landing at 3,023.64. Furthermore, South Korea’s Kospi advanced 1% to 2,300.48, and Australia’s S&P/ASX 200 went up by 0.7% to 6,826.50.
In contrast, Europe is grappling with its economic challenges, as inflation that has burdened consumers dropped significantly to 2.9% in October. Despite this welcome decline, the European economy shrank by 0.1% in the third quarter, raising concerns about the region’s economic health.
On Wall Street, the S&P 500 gained 0.6%, the Dow Jones Industrial Average increased by 0.4%, and the Nasdaq composite climbed 0.5%. Big U.S. companies like Pinterest and Arista Networks reported stronger-than-expected profits, contributing to the upward trend. However, not all companies shared the same fate, with VF Corp. experiencing a drop in stock value after reporting weaker profits.
The Federal Reserve’s decision on interest rates and the state of the U.S. economy are critical factors that will shape the financial landscape in the coming days. With Asian shares reflecting the positive momentum from Wall Street, investors remain on the edge of their seats, awaiting the Federal Reserve’s verdict that will inevitably impact global markets.
