Asian Equities Waver Before Key Rate Decisions – Asia Market Wrap

Asian equities fluctuated as traders awaited a raft of interest-rate decisions by central banks, including the Fed, this week.

An important regional market benchmark traded in a narrow range, while mainland Chinese equity indexes rose. According to a report, Beijing intends to set an annual growth target of around 5% for next year, while increasing the budget deficit to 4% of GDP.

This week, all eyes will be on a number of central bank policy decisions, including those from the United States and Japan. Sentiment in the United States remains largely upbeat, with the Fed’s widely anticipated quarter-point rate cut on Wednesday expected to provide new support and extend stock gains.

The yen ended a six-day losing trend after falling over 154 against the dollar overnight. The yen’s rapid slide in the last week to 155 against the dollar has experts warning that additional weakness may prompt verbal action from authorities and increase pressure on the Bank of Japan to raise interest rates. According to swaps market prices, traders expect a rate hike of less than 20% in December.