As Fed Decision Approaches, Stocks are Mixed & Yen Gains – Asia Market Wrap

The Yen surged, recouping much of Tuesday’s losses, despite a fairly directionless Asian day in which traders questioned the extent of a potential Fed rate cut. Stocks were mixed.

Japan’s Yen rose as much as 0.8% after falling 1.3% in New York, contributing to a volatile day for Japanese markets. Market-implied odds currently place the possibility of a half-point Fed rate cut Wednesday at little over 50%. The central bank will also issue updated quarterly predictions, and Chairman Powell will attend a press conference.

While most Asian markets fell, US equity futures rose after the S&P 500 Index set a fresh record high on Tuesday. The dollar and Treasuries were both scarcely altered.

The Yen pared losses from Tuesday as traders awaited the Fed’s decision and a BoJ meeting later this week. BoJ Governor Ueda and his colleagues are expected to hold their meeting on Friday and debate whether conditions are favourable for another raise this year.