Shares in Asia in Asia traded broadly higher ahead of Wednesday’s Federal Reserve decision. The yen strengthened from near its weakest level this year after Japan’s foreign exchange chief said he was on standby for intervention.
MSCI’s Asia Pacific Index rose about 1%, led higher by Japanese stocks, with the Topix benchmark gaining the most in a year.
Shares in Hong Kong and mainland China fluctuated after a private survey showed China’s manufacturing activity contracted. S&P 500 futures edged lower after the index rebounded in the final day of October.
Treasury 10-year yields ticked marginally lower after rising in the previous session. Traders are taking the latest US economic data in stride as they expect another interest-rate hold decision from the Fed. Focus is also on the US government’s new borrowing plan, due hours ahead of the Fed’s announcement.
Meanwhile, China’s central bank withdrew cash from the financial system, suggesting it sees the previous day’s abrupt surge in short-term borrowing costs as a temporary disruption. The Bank of Japan announced unscheduled bond-purchase operations to curb gains in yields following its policy decision. – Bloomberg
