Global mkts mixed as Fed begins policy meetings
Japan’s Nikkei 225, Australia’s S&P/ASX 200, India’s Sensex and USA’s Dow Jones Industrial Average made gains while many other markets across world were trading in negative territory
Foreign investors unwilling to chase most stocks at current valuations, say analysts
Hong Kong: Asian stocks were mixed on Wednesday as markets awaited a decision on interest rates by the Federal Reserve, while China reported manufacturing contracted in January for a fourth straight month. US futures and oil prices declined.
Japan’s Nikkei 225 added 0.6 per cent to 36,286.71. South Korea’s Kospi shed 0.1 per cent to 2,497.09 after Samsung Electronics reported an annual 34 per cent decline in operating profit for the last quarter. Hong Kong’s Hang Seng sank 1.6 per cent to 15,460.78, while the Shanghai Composite shed 1.5 per cent to 2,788.55.
Official data showed China’s manufacturing purchasing managers index, or PMI, rose to 49.2 in January, up from 49.0 in December, but still below the critical 50 mark that indicates expansion rather than contraction. Weak demand in the world’s second largest economy is dragging on growth.
Australia’s S&P/ASX 200 rose 1.1 per cent to 7,680.70 after a survey showed Australia’s inflation rate fell to a two-year low in the December quarter, with the consumer price index at 4.1 per cent, leading to bets that the Reserve Bank may consider an interest rate cut in the next move. India’s Sensex was 0.9 per cent higher while Bangkok’s SET fell 0.5 per cent. In Wall Street, US stocks drifted through a quiet Tuesday and held near their record heights following a mixed set of profit reports. The S&P 500 slipped 0.1 per cent from its record to 4,924.97. The Dow Jones Industrial Average gained 0.3 per cent to 38,467.31, and the Nasdaq composite fell 0.8 per cent to 15,509.90.
