· Asian stocks gained on Tuesday as equity investors prepared for an expected U.S. interest rate cut this week while the pound retreated to a 28-month low as heightened concerns about a no-deal Brexit gripped currency markets.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.35%.
The BOJ added it would ease “without hesitation” if the economy loses momentum for achieving the central bank’s 2% inflation target.
The U.S. Federal Reserve begins a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank’s first rate cut in a decade.
· Japanese shares advanced on Tuesday, led by technology firms, as investors looked beyond sluggish earnings in the previous quarter and bet on a potential recovery over the coming seasons.
The Nikkei share average rose 0.43% to 21,709.31, edging near its 2-1/2-month high of 21,823 touched last week.
Investors were also buying up other tech shares that had been hit by concerns over intensifying frictions between the United States and China over trade and technological issues.
· China stocks ended higher on Tuesday, as investors waited for an expected U.S. interest rate cut this week.
The blue-chip CSI300 index rose 0.4%, to 3,870.32, while the Shanghai Composite index closed up 0.4% at 2,952.34.
· The U.S. Federal Reserve is scheduled to begin a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade.
Most stocks on the newly launched STAR Market extended gains, with only one of the 25 firms ending slightly lower.
· European stocks opened slightly lower on Tuesday as investors prepare for an expected interest rate cut from the U.S. Federal Reserve.
The pan-European Stoxx 600 slipped around 0.2% after the opening bell, with the FTSE 100 the only major European index trading in positive territory. Travel and leisure stocks fell 0.9% while oil and gas stocks gained 0.4%.
· U.S. stock index futures indexes were slightly higher Tuesday morning, ahead of a key meeting by the Federal Reserve.
At around 01:30 a.m. ET, Dow futures rose 35 points, indicating a higher open of more than 41 points. Futures on the S&P and Nasdaq were both marginally higher.
Traders are focused on the upcoming Fed meeting, which starts Tuesday. Market expectations point to a quarter-point rate cut on Wednesday, which would be the first rate cut in a decade.
On the data front, there will be personal and consumer spending figures out at 08:30 a.m. ET; as well as pending home sales and consumer confidence numbers due at 10:00 a.m. ET.
Reference: CNBC, Reuters
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