Stock Market in Asia Slumps Ahead of Fed’s Policy Meeting on Wednesday

Stock Market in Asia Slumps Ahead of Fed’s Policy Meeting on Wednesday
Stock Market in Asia Slumps Ahead of Fed’s Policy Meeting on Wednesday

The Federal Reserve Bank’s meeting regarding the policy meeting slated for Wednesday is affecting the market on the whole. Adding to the woes of already concerned investors, the rumors, about the central bank winding down its easing program in the next few months, are on the rise.

The Asian stocks also looked dreary on Tuesday, as the Hang Seng Index of Hong Kong plummeted by 0.3% during late Asian session. Australia’s ASX/200 Index and Japan’s Nikkei 225 Index also followed suit, going down by 0.25% and 0.2%, in that order.

The Nikkei index in Tokyo dwindled amidst slight ups and downs, with the yen losing strength against the greenback. USD/JPY pair witnessed a surge of 94.94 during the Asian trade, after closing down at 94.22 on Monday. With the price of yen going down, the overseas revenue of companies in Japan gains value due to repatriation, thereby improving the export profits.

Coming to the stocks of major players in Asia, Toyota’s shares moved up by 1.75%, followed by good growth in shares of Mazda, Sony, and Sharp that climbed 1.1%, 4.4% and 1.2%, respectively.

The shares of property developers in China also showed a decline, as the recent data indicated a rise in rates of house by 6% in May, wiping out any possibility of interest rate cut in the real estate sector. The Shanghai Composite index dropped 0.36% following the release of property data by National Bureau of Statistics in China. Shares of majors like China Overseas Land & Investment, Gemdale Properties, and New World Development slumped 1.9%, 0.9%, 1.1%, in that order.

The ASX/200 Index in Australia shed, even though the Reserve Bank of Australia revealed the minutes of the recent policy meeting indicating a possibility of the Central Bank curtailing the rates if required. Stocks of major banks were affected, as the National Australia Bank, ANZ Banking Group and Westpac Banking Group went down by 0.6%, 0.3%, and 0.1%, apiece.

Both South Korea’s Kospi and S&P 500 futures saw a decline of 0.02%. On the contrary, Singapore’s Straits Times Index and New Zealand’s NZSE 50 saw a surge of 0.89% and 0.52%, respectively. The consumer sentiment index in New Zealand climbed 116.6 in the second quarter as per the reports of the Westpac Banking Corporation.