Asia stocks up modestly, dlr steadies before Fed
Asia stocks up modestly, dlr steadies before Fed
Asian stock markets made modest gains on Tuesday as investors waited for the first policy decision of the Federal Reserve under chairman Ben Bernanke and, more importantly, clues on the outlook for U.S interest rates.
Gold held above $566 an ounce, even as the dollar recouped some early losses, while oil stayed just above $64 a barrel as threats of attacks on oil facilities in Nigeria put a floor under prices.
The Fed is expected to lift U.S. interest rates to 4.75 percent from 4.5 percent later on Tuesday, in what would be the 15th increase in as many meetings dating back to June 2004.
More important for markets are what signals the central bank might send on future rate moves, amid speculation that U.S. interest rates may be nearing a peak.
“The market could react if the statement indicates in any way that the tightening cycle is winding down,” said Shigeru Komatsu, forex dealer at Sumitomo Trust and Banking. “But the possibility that the Fed will say anything that will shake up the market is very low.”
More: za.today.reuters.com