Asian shares mixed ahead of Fed meeting
Asian share markets recorded a mixed performance on Wednesday, with stretched valuations heavily dragging investors’ sentiment ahead of a U.S. Federal Reserve meeting.
MSCI’s broadest index of Asia-Pacific shares outside Japan saw a 0.23% decline. Australian shares gained 0.55%, while shares in Tokyo traded 0.16% higher. Chinese shares bucked the trend as they dropped 0.44%.
Investors were waiting for Fed Chairman Jerome Powell to reaffirm the central bank’s ultra-loose monetary policy and dismiss suggestions of tapering bond purchases. This, together with U.S. President Joe Biden’s possible comments about infrastructure and spending, will likely support stocks. However, analysts said that too much economic optimism is already priced into the equity market, making it difficult to purchase stocks.