© Reuters.
By Ambar Warrick
Investing.com– Asian stocks recovered from recent losses on Tuesday, tracking a late-session rebound on Wall Street, although anticipation of a Federal Reserve meeting this week kept bigger gains in check.
Hong Kong’s technology-heavy index was the best regional performer, rising 1.4%, while Australia’s index added 1.3% on strength in heavyweight lending and mining stocks.
, rebounding from recent losses with technology stocks leading the charge. But sentiment remained fragile before the start of a on Tuesday.
The U.S. central bank is widely expected to (bps), although traders are also considering the slim possibility of a full 100 bps hike after hotter-than-expected data last week.
The Fed has raised interest rates four times so far this year, and is likely to signal more hikes with inflation pinned to 40-year highs. Rising U.S. interest rates are expected to weigh on economic growth, which has dented sentiment toward risk-driven assets.
But the Fed won’t be alone in raising rates this week. Central banks in and are also expected to hike interest rates this Friday, with inflation trending higher across the globe.
China’s bluechip index rose 0.3% on Tuesday, lagging regional peers after the People’s Bank maintained its amid steep declines in the yuan. The central bank now faces a balancing act of loosening monetary policy while also supporting the .
Slowing economic growth in China, driven by its zero-COVID policy, has seen the government roll out a series of stimulus measures to spur a recovery. But recent indicators suggest the Chinese economy has a long road ahead before reaching pre–COVID levels.
Japan’s rose 0.4%, even as data showed touched a near eight-year high in August. The reading indicates increasing price pressures on the economy from high commodity prices and a softening .
The is set to decide on monetary policy this week. But the central bank has given no indication that it plans to raise lending rates from negative levels.
Be the first to comment