Asian markets exhibited a mixed trend on Wednesday as investors remained cautious ahead of the Federal Reserve’s policy decision later in the day. Meanwhile, the yen continued to weaken, approaching the 152 level against the US dollar.
European markets are anticipated to open lower, with futures indicating declines for both the EUROSTOXX 50 and FTSE. U.S. futures are also slightly down.
While Tokyo’s Nikkei was closed for a holiday, Nikkei futures edged higher by 0.4%, supported by the yen’s decline following the Bank of Japan’s policy move.
In Asia-Pacific, Taiwanese shares declined by 0.6%, while South Korean shares surged by 1.2%, driven by a notable increase in Samsung Electronics. Chinese shares saw modest gains, with the Shanghai Composite and Hang Seng indexes rising slightly.
The US dollar strengthened against the yen, reaching a fresh four-month high of 151.51 yen, nearing the 152 level. Analysts expect the Bank of Japan’s recent policy shift to have a gradual impact, prolonging the lifespan of carry trades involving the yen.
Market focus now shifts to the Federal Reserve’s policy meeting outcome, where investors anticipate any adjustments to interest rate projections. Speculation suggests a potentially hawkish stance, which could favor the U.S. dollar.
In the foreign exchange market, the euro and Australian dollar made gains against the yen, reaching multi-year highs.
Oil prices retreated from recent highs amid a strong dollar, with Brent crude easing to $87.18 a barrel and US crude declining to $83.21 per barrel.
Gold prices remained stable, trading at $2,157.32 per ounce, although slightly below the record high achieved earlier this month.
Investors are closely monitoring central bank meetings and policy decisions, seeking clarity amidst evolving economic conditions and geopolitical developments.