Asian Markets Rise With Focus On Fed Policy Meeting 18 June 2019
Umer Jamshaid 1 month ago Tue 18th June 2019 | 01:49 PM
Asian markets mostly rose Tuesday but gains were limited, with investors treading uneasily as they await the conclusion of a crucial Federal Reserve meeting this week
Hong Kong, (UrduPoint / Pakistan Point News - 18th Jun, 2019 ):Asian markets mostly rose Tuesday but gains were limited, with investors treading uneasily as they await the conclusion of a crucial Federal Reserve meeting this week.
While geopolitical tensions and the China-US trade war continue to make waves, the key focus for now is what the US central bank plans to do with monetary policy as the tariff stand-off shows signs of impacting the world's top economy.
The latest weak data saw manufacturing activity in New York state plunge into contraction this month and hit its lowest level since late 2016, reflecting steep drop-offs in new orders, backlogs and employment.
Observers pointed out the reading coincided with US President Donald Trump's threat to impose tariffs on Mexico over immigration policy, which he has since withdrawn, but added that the reaction suggests how manufacturers would react to further action against China.
There has been increasing talk that the Fed will cut borrowing costs for the first time in more than a decade, although the expectation is for a move later on. The shift to a more dovish tone from the bank has been a key support for global markets in the face of the trade uncertainty.
Still, Cesar Perez Ruiz, chief investment officer at Pictet Wealth Management, warned: "If market expectations for cuts are not met, we could see a jump in market volatility. Unless US-China trade talks completely derail, we expect a first Fed rate cut to come no earlier than September, in contrast to what markets have priced in."Hong Kong jumped one percent, Sydney rose 0.6 percent, Shanghai edged 0.1 percent higher and Singapore put on one percent while Seoul added 0.4 percent. Wellington, Taipei, Mumbai and Jakarta also climbed, but Tokyo ended 0.7 percent lower as it was hit by a strengthening yen.