Asian stocks waver as investors await c. bank decisions

Asian stocks were volatile, and the dollar remained strong on Tuesday as investors prepared for upcoming central bank meetings. The US Federal Reserve is expected to cut rates, while the Bank of Japan (BOJ) will likely maintain its current stance.

Australian shares rose by 0.82 per cent, Japan’s Nikkei was down by 0.15 per cent and Taiwan stocks were 0.3 per cent higher.

MSCI’s Asia-Pacific index outside Japan was down by 0.3 per cent, but it is on track for a 10 per cent gain for the year, its best performance since 2020.

China’s consumption slowed more than expected in November, leading to a stock drop. On Tuesday, Hong Kong’s Hang Seng Index fell by 0.6 per cent, while mainland stocks eased by 0.57 per cent.

In South Korea, the Kospi index was down 0.57 per cent, bringing its yearly losses to around seven per cent, making it the worst-performing market in Asia this year.

The market has been affected by political turmoil, with president Yoon Suk Yeol impeached and suspended from his duties on Saturday due to his brief attempt to impose martial law.

The dollar index, which measures the US currency against six rivals, was stable at 106.88, set for a five per cent gain for the year.

The yen was at 154.11 per dollar, under pressure with low expectations of a BOJ rate hike this week.

The euro was at $1.050775, heading for a nearly five per cent decline in 2024, while sterling held steady at $1.26775.

Oil prices were flat amid concerns about Chinese demand before the Fed meeting. US WTI crude was down 0.11 per cent at $70.63 a barrel, and Brent crude futures slipped 0.04 per cent to $73.88 a barrel.

Spot gold dipped 0.1 per cent to $2,650.38 per ounce, poised for a 29 per cent increase in 2024, its strongest performance since 2010.

Attribution: Reuters

Subediting: M. S. Salama