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Asia Stocks Edge Higher, Dollar Down After Fed Meeting

Posted by Chris Advincula on Jul 28, 2016 12:24:57 AM


(July 28 Reuters) Asian stocks edged up on Thursday after the Federal Reserve provided a positive assessment of the world's largest economy and lifted risk sentiment.

The dollar fell, however, as some in the currency market had hoped the Fed would give a clearer indication that it could raise rates within a year.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent after briefly climbing to its highest level since August 2015.

Australian shares rose 0.4 percent and Shanghai gained 0.3 percent, trimming some of the heavy 1.9 percent loss suffered the previous day.

News that Chinese regulators are planning a tough clampdown on wealth management products to curb risk to the country's banking system had weighed heavily on Chinese stocks, but investors are still wading through the details.

Japan's Nikkei fell 0.7 percent, hurt by a stronger yen and nerves before the Bank of Japan's monetary policy decision on Friday.

"But the BOJ can't save face if it does not cut rates into negative territory after it introduced the negative interest rate policy (in January), so we need to brace for such possibility too."

Wall Street shares ended little changed overnight following the Fed's policy decision to leave interest rates unchanged.

The Fed did say, however, that near-term risks to the U.S. economic outlook had diminished, opening the door for a potential near-term hike in the eyes of many.

But the Fed also noted that inflation expectations were on balance little changed in recent months, and gave no firm indication of whether it would raise rates at its next policy meeting in September.

Click on the link below to see the full story from Reuters: (by Shinichi Saoshiro)

Asia stocks edge higher, dollar down after Fed meeting



Topics: Asian market, US Dollar, Stocks, FOMC, Forex, Federal Reserve monetary policy


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