HONG KONG, July 30 — Asian markets today mostly rebounded from the previous day’s losses on bargain buying in cautious trade ahead of a closely watched policy meeting at the Federal Reserve.
With the focus on the US central bank, investors brushed off losses on Wall Street, while Japanese shares enjoyed a pick-up thanks to a weakening yen.
Tokyo rose 0.30 per cent, Shanghai added 0.26 per cent, Seoul was 0.55 per cent higher and Hong Kong advanced 0.23 per cent but Sydney lost 0.27 per cent.
Investors are sitting on the sidelines before the Fed’s policy statement tomorrow that they hope will provide an idea of its intentions for its US$85 billion (RM275 billion) a month stimulus programme.
Most economists expect the scheme to be kept in place for the time being as the bank waits for the economy to show signs it can stand on its own two feet.
Also in traders’ sights this week are the release of non-farm jobs, second-quarter gross domestic growth and home prices.
On Wall Street the Dow fell 0.24 per cent, the S&P 500 dropped 0.37 per cent and the Nasdaq eased 0.39 per cent.
In currency trade the dollar rose against the yen after hitting a one-month low yesterday.
The greenback bought 98.11 yen compared with 97.89 yen in New York yesterday. The euro bought US$1.3255 compared with US$1.3264, while it also sat at ¥130 (RM4.288), from ¥129.85 yen.
The euro has enjoyed some measure of support from signs the eurozone is finally picking up strength and could even drag itself out of recession. With this in mind the European Central Bank is expected to hold off announcing any new interest rate cuts.
In Tokyo investors seemed to shrug off data showing industrial output fell a heavier-than-expected 3.3 per cent month on month in June, while household spending also slipped.
However, the silver lining was news that unemployment had fallen to 3.9 per cent, its lowest level since October 2008.
On oil markets New York’s main contract, West Texas Intermediate for delivery in September, fell 16 cents to US$104.39 a barrel, while Brent North Sea crude for September climbed five cents to US$107.50.
Gold cost US$1,327.80 per ounce at 0235 GMT, compared with US$1,334.38 yesterday. – AFP
