Market Report – Asia Eyes U.S. Fed
Asian stocks wavered as investors turned cautious ahead of a meeting of the U.S. Federal Reserve.
Markets expect the Fed to pledge to maintain very low rates for an extended period following the two-day meeting which begins later on Tuesday, but they will be on guard for any new indications about monetary policy.
Meanwhile, the strengthening yen against the U.S. dollar continued to put Japanese exporters such as Sony under pressure.
Hong Kong’s Hang Seng Index also fell as shares of Chinese banks were hit by fears Beijing could soon clamp down on bank lending after announcing moves on Monday to try and rein in the property market.
Chinese property firm Sunac China Holdings announced it will postpone its Hong Kong IPO because of market conditions.
In Australia, the share market nudged up as energy shares were boosted by news overnight that Exxon Mobil, the world’s largest listed energy company, planned a $30 billion takeover of natural gas supplier XTO Energ.
And Rio Tinto gained on news it could invest up to $2.5 billion in a potential aluminum smelter in Paraguay.