Asian shares rise, euro faces pressure

Tokyo: Asian shares firmed on Wednesday after earnings-fuelled gains on Wall Street, while the euro remained under pressure after weaker-than-expected German inflation data raised speculation of more easing in Europe.

Investors stayed cautious before central bank decisions from the Bank of Japan and then the Federal Reserve later in the session, as well as key US jobs data on Friday.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1% in early trading, while Japan’s Nikkei stock average rose 0.8% after Tokyo markets were closed for a holiday on Tuesday.

US equities got a lift on Tuesday from earnings results from companies including Merck and Co. Inc., and a rebound in Facebook Inc. and other high-growth shares.

Later on Wednesday, Fed officials are expected to decide unanimously at the conclusion of their two-day meeting to continue tapering the central bank’s massive bond-buying stimulus. Investors will focus on what their statement implies about the monetary policy outlook.

“For the most part we expect the statement to remain virtually unchanged. Having just shifted to qualitative guidance in March, the central bank is not planning to make any significant alterations in the near future,” said Kathy Lien, managing director of FX strategy at BK Asset Management.

“Expectations for steady taper explain the dollar’s muted reaction to positive and negative data,” she said in a note to clients.

Against the greenback, the euro steadied at $1.3812 after losing 0.3% on Tuesday. Against its Japanese counterpart, the euro inched down to 141.66, after shedding 0.2% the previous day.

 

ANKUR MISHRA

PGDM 1ST

SOURCE MINT