Asia report: Stocks rise ahead of US Fed rate decision
By Josh White
Date: Wednesday 22 Mar 2023
(Sharecast News) - Stock markets were positive in the Asia-Pacific region on Wednesday, as investors prepared for the US Federal Reserve's interest rate decision due later in the global day.
Despite recent liquidity concerns for the banking sector in both the United States and Europe, economists widely anticipated the Fed to add 25-basis points to interest rates.
"Asian equities extended the positivity from Wall Street, as the US benchmarks all ended in the green for a second day as stability in the banking sector led investors to reposition, while market attention moved to today's FOMC decision," said TickMill market analyst Patrick Munnelly.
"The Nikkei posted 2% gains on the session as it played catch-up on return from holiday amid notable strength in the banking industry, and with Japan announcing a JPY 2trn buffer from reserves to soften the impact on the economy."
Munnelly noted that the Hang Seng and Shanghai Composite were also in the green for the session, although the gains in Shanghai were more muted absent the People's Bank's liquidity provisioning.
"This is coupled with US initiatives to reduce activity in certain foreign semiconductor firms that access the $52bn of chips funding from the US."
Stocks green as Japan returns from holiday
Japan's Nikkei 225 rose by 1.93% to 27,466.61, while the Topix climbed by 1.74% to 1,962.93.
Among the leaders on Tokyo's benchmark index were Ebara Corporation, which gained 5.84%, while Rakuten rose 5.83%, and TDK added 4.59%.
In China, the Shanghai Composite increased by 0.31% to 3,265.75, and the Shenzhen Component surged by 0.61% to 11,496.93.
Foxconn Industrial Internet Company soared by 10% in Shanghai, while China Design added 9.98%.
Hong Kong's Hang Seng Index rose by 1.73% to 19,591.43, with Wharf Real Estate surging by 6.02%, Longfor Properties adding 5.16%, and AIA Group climbing by 3.6%.
South Korea's Kospi increased by 1.2% to 2,416.96, with SKC rising by 5.46% and LG Energy Solution gaining 4.95%.
In Australia, the S&P/ASX 200 rose by 0.87% to 7,015.60, with New Hope Corporation adding 5.26% and Woodside Energy Group gaining 5.2%.
New Zealand's S&P/NZX 50 climbed by 0.48% to 11,586.93, with Restaurant Brands NZ rising by 4.84% and EBOS adding 2.77%.
Down under dollars stronger as oil falls
In currency markets, the yen was 0.26% weaker against the dollar to last trade at JPY 132.85, while the Aussie was 0.41% stronger at AUD 1.4933.
The Kiwi meanwhile advanced 0.42% on the greenback to change hands at NZD 1.6078.
In energy markets, Brent crude futures fell 0.32% on ICE to $75.08 per barrel, while the NYMEX quote for West Texas Intermediate dropped by 0.3% to $69.46.
Reporting by Josh White for Sharecast.com.
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