Asian Markets Gain Across Board As Investors Look To Fed
- Asian stocks rose across the board Wednesday
- The Nikkei 225 stood out, gaining nearly 2%, with energy stocks and Sony helping
- The Dollar inched up broadly before the Fed, but the New Zealand Dollar also gained on stronger data
The year’s final quarter is under way. What might it hold for the major currencies? The new DailyFX Technical and Fundamental forecasts are out.
Asian stocks rallied Wednesday with Tokyo and Seoul leading the way as oil prices rose and a Chinese manufacturing roundup met forecasts.
Markets had a mild tailwind from a stronger Wall Street finish. Of course, investors were also looking ahead to the US Federal Reserve’s November monetary policy decision which will come long after the Asian market close. The Fed is expected to leave interest rates alone this time around but to leave the door to a December increase very much open. The markets also expect to hear this week about who will replace Janet Yellen at the Fed’s helm. Some more clarity on US tax reforms may be coming too.
The US Dollar edged higher against most of its major rivals although the New Zealand Dollar caught a solid bid too on some expectation-beating local employment numbers. China’s October look at smaller, private manufacturers from Caixin met expectations exactly, in contrast with the official Purchasing Managers Index for the same month which missed them on Tuesday.
Investors have plenty of data to get through before they get to the Fed decision although there's no doubt that that will top the bill. Further manufacturing PMIs are coming up, from the US, Canada and the UK. The US employment snapshot from the Institute for Supply Management is also coming up, along with the construction spending roundup. Oil inventory data from the Department of Energy is due as well.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter:@DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.