Prior to the U.S. Federal Reserve policy meeting on Tuesday, Asian stocks rallied to a ten-year high during the early trading session on Monday in anticipation of the meeting which will give the markets a view on the Fed’s monetary policy plans.
The Kospi index from South Korea gained 0.46% during the morning session with the technology stocks contributing to the index the most with Samsung Electronics rising 1.07%. Other sectors such as automobile and manufacturing stocks gave off mixed sentiments during Monday’s session.
Asian stocks were lower last week still affected by North Korea’s recent missile launches and nuclear bomb tests in the past month. The Nikkei gained only 0.1% after the markets commented that the yen’s recent recovery was not enough to send most stocks up while the Kospi index declined by 0.4%.
Other stocks in Asia, especially in Hong Kong, were down last week with the Hang Seng index down by around 0.6%. Oil futures also traded down in Asia last week despite showing a sudden rally in the prior sessions due to the sudden decline in oil inventories in the United States.
However, most Asian stocks were down on Monday with the S&P/ASX 200 in Australia losing only around 0.55% with the financials sub-index rising nearly 1%. The energy and utility sector also recorded new gains during the early trading on Monday. Meanwhile, the Japanese market is closed during the day for a holiday. The MSCI index outside Japan in the Asia-Pacific up by 0.9% the highest seen in the past ten years.
Asian shares recorded a ten-year high or a decade high on Monday after the dollar rallied against the yen during the week where the Federal Reserve is expected to announce an update on its monetary policy.
The U.S. and European market are expected to show the same role with the FTSE rising 0.43$ and the Eurostoxx rising by 0.46% during the last previous trading session.
Outside Asia, oil prices were also trading higher and are set to touch a five-month high due to the forecasted rise in the demand for oil products. The U.S. dollar also traded slightly higher in anticipation of a monetary tightening policy. News of Canada who has previously raised its interest rates two times in the past couple of months has sent the markets expecting more announcements from other central banks to make announcements regarding its future plans for its monetary policy direction.
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