- Asian shares remain heavy even as BOJ revised up economic forecasts.
- Fed’s inability to offer fresh stimulus, dot-plot gained major attention.
- Aussie employment data failed to please buyers as ASX 200 drops over 1.0%, New Zealand GDP also got ignored.
- Risk catalysts took a back seat ahead of another long day.
Asian shares snap the five-day winning streak as nothing matters more than the US Federal Reserve’s (Fed) reluctance to offer fresh stimulus. While portraying the market’s disappointment from the Federal Open Market Committee’s (FOMC) decision, the MSCI index of Asia-Pacific shares, ex-Japan, declines more than 1.00% whereas Japan’s Nikkei 225 loses 0.68% to 23,315 ahead of Thursday’s European session.
The losses of Nikkei 225 fail to respect the Bank of Japan’s (BOJ) cautious optimism, amid status-quo, as well as increasing hopes that the coronavirus (COVID-19) vaccine will be out soon.
Not only Tokyo but shares in Australia and New Zealand also couldn’t cheer upbeat statistics at home. As a result, ASX 200 drops 1.06% even as Australia’s August month employment data beat forecast. The same is true for New Zealand’s NZX 50, down 0.70% to 352.69, as it paid a little heed to the better than forecast Q2 GDP figures.
Markets in China, Hong Kong and South Korea are average 1.0% in the red but those in Indonesia await the Bank Indonesia’s (BI) monetary policy report for fresh moves below 0.30% intraday loss. Further, India’s BSE Sensex follows the likes of IDX Composite while printing 39,181 level, down 0.31% on a day.
Looking forward, monetary policy meetings by the BI and the BOE will entertain the market players ahead of the US Jobless Claims and Philadelphia Fed Manufacturing Survey.
Above all, it should be noted that the US dollar marks the biggest gains in over a week while the Chinese Yuan steps back from 16-month top flashed on Wednesday. Furthermore, S&P 500 Futures decline 1.3% and the US 10-year Treasury yeilds lose 1.1 basis points (bps) to 0.676% as we write. Additionally, gold prices drop near 1.0% while WTI declines 1.5% ahead of the OPEC+ meeting.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.