Asian shares gain, Fed dampens mood
Wall Street’s overnight rally had spilled across Asia, with shares across the region recording an upbeat performance during their early Tuesday trade. However, investors were cautious ahead of a Federal Reserve meeting as this would signal any change in the central bank’s monetary policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.23% higher. Japan’s Nikkei advanced 0.89%, while Australian shares tallied a 1.03% increase. Chinese blue chips and Hong Kong shares failed to ride the upswing, declining 0.16% and 0.21% respectively.
The Federal Reserve’s two-day meeting remained crucial as this would provide hints about the central bank’s policy guidance. This, in turn, dragged investors’ enthusiasm amid inflation-related concerns that are evident as the U.S. economy emerges from the coronavirus drag.