TOKYO (Reuters) - Asian shares rose modestly on Tuesday, with technology stocks nosing ahead, while the dollar held its ground ahead of a Federal Reserve policy meeting expected to reiterate a pledge to keep rates low for a long time.
WASHINGTON — The Federal Reserve on Wednesday opened the door further for an interest rate hike as early as June, ending its pledge to be “patient” in normalizing monetary policy.
But the U.S. central bank signaled a more cautious outlook for U.S. economic growth and slashed its projected interest rate path, in a sign that it remains concerned about the health of the recovery.
TOKYO: Asian shares and the dollar inched higher on Tuesday but caution reigned after Wall Street skidded as investors awaited this week's US Federal Reserve policy decision. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, after Wall Street logged losses, with US trading volume at its lowest in a month as markets awaited the Fed outcome. Japan's Nikkei stock index rose 0.6 per cent as investors awaited the outcome of the Bank of Japan's two-day policy meeting later this session, as well as BOJ Governor Haruhiko Kuroda's post-meeting speech.
NEW DELHI: The Reserve Bank of India (RBI), which is scheduled to hold its monetary policy meeting on Tuesday, is likely to set the tone for Dalal Street for the rest of the week. Traders in derivatives markets are creating bullish bets on select interest rate-sensitive stocks, like banking and automobiles, ahead of the RBI monetary policy meeting. However, the Street remains divided on the outcome of the RBI policy meeting. Most of the analyst see a status quo on rates, but the commentary on further rate cuts will be something which market participants will be watching.
Washington (AFP) - The Federal Reserve dropped its pledge to remain "patient" on raising interest rates Wednesday, signaling a possible midyear fed funds rate hike after over six years at the zero level.
WASHINGTON — The U.S. Federal Reserve said on Wednesday the economy continues to recover but is still in need of support, offering no indication that a reduction in the pace of its bond-buying stimulus program is imminent.
For now, the Fed will keep on buying US$85-billion in mortgage and Treasury securities per month in its ongoing effort to bolster an economy still challenged by federal budget-tightening and weak growth overseas.
HONG KONG (Reuters) - The dollar held firm on Tuesday against major currencies, and hit a two-month high against the yen, while Asian shares edged up as technology stocks tracked a rally in their peers on Wall Street.