The relative growth of stock values in Asia on the eve of the Federal Reserve meetingDeltafx Admin 1 February 2023
Most Asian stock markets edged higher on Wednesday after Wall Street rallied overnight. Traders are now waiting for more signs on U.S. monetary policy from the Federal Reserve’s decisions later today.
Regional stocks received positive cues from a strong rally on Wall Street overnight after quarterly earnings rose better than expected. Data showing that U.S. labor cost growth was lower than expected reinforced expectations that inflation will continue to fall in the coming months.
But mixed Chinese manufacturing data and concerns about the outlook for the Federal Reserve’s tightening policy sent regional dividends lower. China’s Shanghai-Shenzhen CSI 300 and Shanghai Composite indexes posted weaker growth than their peers today as a private survey showed the country’s manufacturing sector contracted in January despite the easing of anti-covid restrictions.