Asian Shares Drop as Eyes Turn to Central Bank Meetings
TOKYO — Asian stocks mostly fell Wednesday after a muted market response to the Trump-Kim summit. Investors have currently turned their eyes to the trio of This kind of week’s central bank meetings.
KEEPING SCORE: Japan’s benchmark Nikkei 225 edged up 0.3 percent in early trading at 22,934.58. South Korea’s Kospi was down by less than 0.1 percent at 2,468.83. Hong Kong’s Hang Seng fell 0.6 percent to 30,913.91, in addition to the Shanghai Composite index also lost 0.6 percent to 3,062.12. Australia’s S&P/ASX 0 also dropped 0.5 percent to 6,024.10.
WALL STREET: The Standard & Poor’s 500 index rose 4.85 points, or 0.2 percent, to 2,786.85, closing at its highest level since February 1. The Nasdaq composite added 43.87 points, or 0.6 percent, to 7,703.79 in addition to the Dow Jones industrial average fell 1.58 points, or less than 0.1 percent, to 25,320.73. The Russell 2000, an index of which makes up mostly modest companies, rose 7.62 points, or 0.5 percent, to 1,682.30.
TRUMP-KIM SUMMIT: Trump in addition to Kim concluded their summit Tuesday by committing to working “toward complete denuclearization of the Korean Peninsula” in addition to to “build a lasting in addition to stable peace regime” on the Korean Peninsula. Trump surprised both the Pentagon in addition to the South Korean military by promising to end U.S. military exercises with South Korea. Details were left vague, although progress there has the chance of lowering geopolitical tensions in a region of which includes three of the globe’s largest economies: Japan, China in addition to South Korea.
CENTRAL BANKS: The Federal Reserve resumes a two-day meeting on interest rates later Wednesday. Investors expect the central bank to raise its benchmark rate by a quarter of a percentage point to a range of 1.75-2 percent. However investors’ attention will focus more on how many additional rate hikes Fed officials may do This kind of year. On Thursday, the European Central Bank will meet in addition to could outline an end to its stimulus program, while on Friday the Bank of Japan is actually due to give its latest policy update.
ANALYST’S TAKE: “Fed are the ones of which could surprise on the hawkish side which should support a stronger US dollar vs EUR, AUD in addition to JPY.” said Stephen Innes, analyst at Oanda.
ENERGY: Benchmark U.S. crude lost 41 cents to $65.95 a barrel. Brent crude, used to cost international oils, fell 23 cents to $75.65 per barrel in London.
CURRENCY: The dollar rose to 110.54 yen by 110.30 late Tuesday in Asia. The euro fell slightly to $1.17 by $17.99.
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