Asian Shares Mixed, USD Strong as Investors Eye Fed Meeting

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Asian shares had a mixed day on Tuesday and the dollar sat near multiweek highs ahead of a muchanticipated Federal Reserve policy meeting, which investors are watching for hints of any change to the U.S. monetary policy outlook.

Japans Nikkei rose 1.05 and the Australian benchmark, traded up 0.93, but Chinese blue chips fell 0.97.

This left MSCIs broadest index of AsiaPacific shares outside Japan trading flat.

Chinas markets were closed on Monday for a holiday, meaning this was their first response to a joint statement by the Group of Seven leaders that had scolded Beijing over a range of issues which China called a gross interference in the countrys internal affairs.

However, futures indicated European and U.S. markets were set to open higher. U.S. stock futures rose 0.16, Euro Stoxx 50 futures were up 0.39 and FTSE futures were up 0.31.

We are still getting markets responding positively to the lower volatility in the bond markets and lower yields, and a sense that inflation will be reasonably temporary so the Fed wont have to slam the breaks on, said Kyle Rodda, market analyst at brokerage IG.

I suspect in the next 2448 hours well see a lot of chop, first on the upside, then a little correction as the market positions itself, and then were off to the races if we get the green light from the Fed Thursday morning, Rodda added.

The twoday meeting starts on Tuesday, with a final statement published after the meeting closes on Wednesday.

Traders around the world are…

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