Asia report: Most markets higher ahead of Fed meeting
Most markets in Asia finished in positive territory on Monday, as traders got the last of their Christmas shopping done and began to look ahead at forecasts for 2019.
In Japan, the Nikkei 225 was up 0.62% at 21,506.88, as the yen strengthened 0.1% against the dollar to last trade at JPY 113.28.
The broader Topix index was ahead 0.13% to close at 1,594.20 in Tokyo.
Communications giant SoftBank rose 0.52%, just two days before it spins out its cellular operations in an initial public offering.
On the mainland, the Shanghai Composite added 0.16% to 2,597.97, and the smaller, technology-heavy Shenzhen Composite fell 0.31% to finish at 1,323.31.
It was a politically-charged day in China, as the People’s Republic marked the 40th anniversary of the country’s economic reforms under ex-leader Deng Xiaoping.
Current leader Xi Jinping was set to address the nation later in the day, as ongoing trade tensions between Beijing and Washington remain set to finally egg the two administrations into finding some more common ground.
South Korea’s Kospi eked out gains of 0.08% to close at 2,071.09, while the Hang Seng Index in Hong Kong went against the benchmark trend and slipped 0.03% to 26,087.98.
Investors hopeful for a broader Santa Rally had so far been left disappointed by global markets in recent sessions, with many now looking to the Federal Reserve’s interest rate decision this week to spur something decent on before the close of 2018.
“Markets are quite happy, if not desperate, for at least a dovish line to be thrown by the FOMC,” noted analysts at Mizuho Bank.
Oil prices were higher, with Brent crude last up 1.15% at $60.98 per barrel, and West Texas Intermediate adding 0.93% to $51.68.
In Australia, the S&P/ASX 200 was 1% higher at 5,658.30, despite weakness among most of the major banks, as the hefty financials subindex fell 0.11%.
Australia and New Zealand Banking Group was down 1.57%, Commonwealth Bank of Australia managed gains of 0.65%, National Australia Bank was off 0.59%, and Westpac Banking Corporation ended the day 0.92% below the waterline.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 gained 0.3% to close at 8,745.59, led higher by medical equipment manufacturer Fisher & Paykel Healthcare, which rose 4.6%.
The down under dollars were a mixed bag, with the Aussie last 0.01% weaker against the greenback at AUD 1.3936, while the Kiwi strengthened 0.16% to NZD 1.4688.