· Stock rally loses steam as markets wait for Fed
Asia’s stock markets edged up to a fresh three-month high on Wednesday, with the dollar again under pressure but sentiment was largely cautious ahead of the U.S. Federal Reserve’s next move.
MSCI’s broadest index of Asia-Pacific shares outside Japan, which has galloped 9% higher in June and is 35% above March lows, rose 0.5%. Japan’s Nikkei rose 0.3%.
Focus is on the Fed’s economic outlook and whether a steepening of the U.S. yield curve during last week’s bond market selloff might prompt intervention at longer tenors.
· Japanese shares end almost flat just below 3-month high as rally loses steam
Japanese shares closed nearly flat on Wednesday, ending just below a three-month high hit earlier this week, as investors paused to take stock of the market that rose on hopes of a swift recovery from a coronavirus-led downturn.
The Nikkei share average ended up 0.15% at 23,124.95, while the broader Topix lost 0.23% to 1,624.71.
· China stocks end lower as factory gate deflation deepens
China stocks ended lower on Wednesday as deepening deflation in the country’s producer prices underlined the economic impact of the COVID-19 pandemic on overseas demand, raising doubts about a swift economic recovery.
At the close, the Shanghai Composite index was down 0.42% at 2,943.75.
China’s producer prices fell by the sharpest rate in more than four years, underscoring pressure on the manufacturing sector as the COVID-19 pandemic reduces trade flows and global demand.
· European markets rise as investors wait to hear from Fed
European stocks advanced on Wednesday as investors await the outcome of the U.S. Federal Reserve’s latest policy meeting and economic forecasts.
The pan-European Stoxx600 climbed 0.9% at the start of trading, with banks adding 2% to lead gains as all sectors and major bourses entered positive territory.
Global markets on Wednesday will be focused on the Fed’s latest policy meeting. U.S. stock futures rose slightly in overnight trading as investors await clarity on the state of the economy from the Fed.
· Thailand to consider reopening more businesses as virus appears contained
Thailand will consider a plan to reopen more businesses and establishments from as early as June 15, an official said on Wednesday, after the country has reported no local transmissions of the coronavirus in the past 16days.
The government’s Centre for COVID-19 Situation Administration will consider the plan for the next phase of more “high risk” reopenings on Friday, said TaweesinWisanuyothin, the centre’s spokesman.
A draft of the plan currently includes schools, alcohol sales in dine-in restaurants, concerts with seating arrangements, amusement parks and playgrounds, and outdoor sports facilities, he said.
The businesses and activities could resume as early as June 15, or sometime before the end of the month, said Taweesin.
The plan does not yet include nightlife venues or “soapy massage” parlours, he said.
Reference: CNBC, Reuters
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