HONG KONG: Asian stocks markets drifted Tuesday and the dollar was virtually unmoved with investors biding their time as crucial central bank gatherings in the United States and Japan kick off.
The Fed heads into one of its most keenly awaited policy meetings after weeks of speculation that has fanned volatility across global trading floors, with investors split on whether it will lift interest rates.
At the same time opinion is divided on what the Bank of Japan’s intentions are, with expectations for fresh stimulus tempered by a lack of concrete promises from Tokyo, despite weak growth and almost non-existent inflation.
The uncertainty leading up to the meeting is keeping traders at bay, Chris Weston, chief market analyst in Melbourne at IG Ltd, said.
“No one is prepared to take on too much risk ahead of the Bank of Japan and the Fed Open Market Committee meetings,” he told Bloomberg News.
Tokyo’s Nikkei index swung to and fro in early trade before ending the morning 0.1 percent higher.
However, Hong Kong slipped 0.5 percent and Shanghai lost 0.2 percent following healthy gains Monday. Sydney dropped 0.2 percent and Seoul was flat and Singapore shed 0.2 percent.
Currency markets were also subdued ahead of the bank announcements, which are due Wednesday.
The dollar edged up to 101.97 yen from 101.88 yen in New York while the euro was at $1.1178 from $1.1175.
