Stocks Range-Bound Ahead of Fed Meet, Yen Falls – Asia Market Wrap

Chinese stocks rose after the country’s banks left their benchmark lending rates unchanged. The focus is on a number of major earnings, including those from Tencent. Australian shares fell while Japanese markets were closed for a holiday.

European futures sank alongside US contracts, cancelling off Tuesday’s gains on Wall Street as the “Magnificent Seven” cohort of tech megacaps recovered. Nvidia’s new processors aided the surge, while speculations in Asia that the business was attempting to purchase Samsung’s memory chips boosted the South Korean market.

According to Audrey Goh, head of asset allocation at Standard Chartered Wealth Management, gains in Chinese shares this year reflect “a base forming” around the beaten-down market due to evidence of official backing. “We need a bit more in terms of policy support from the government to entice investors back,” she went on to say.

Traders have increased their short Treasury bets ahead of the Fed’s decision later Wednesday, when the central bank is likely to keep rates unchanged for the fifth consecutive meeting. Treasuries trading in Asia will be suspended on Wednesday due to a Japanese holiday.