Monday, 18 September 2017

Asian markets rose despite North Korean fears

Posted by Valentine at 10:37 Labels:

Asian stocks were mostly higher on Monday, with investors looking ahead to key monetary policy events later this week to assess the likelihood of policy changes in the near future.

Australia ASX +24.50 +0.43% 5,780.30 OPEN
Shanghai Comp +8.33 +0.25% 3,361.95 OPEN
Hang Seng Index +290.66 +1.05% 28,098.25 OPEN
Nikkei 225 +102.06 +0.52% 19,909.50 CLOSED
TSEC 50 Index +46.44 +0.44% 10,626.85 OPEN

Traders ignored developments in the Korean peninsula. Over the weekend, US President Donald Trump and South Korea’s President Moon Jae In agreed that new economic and diplomatic measures should be taken against North Korea.

The United Nations Security Council met late Friday to discuss the latest missile launch conducted by Pyongyang and that for the second time this year broke into Japanese airspace. The organisation jointly condemned the “outrageous” act of provocation.

US Secretary of State Rex Tillerson said that if sanctions are not enough to stop the North Korean threats, the military way will be the only alternative left.

No relevant economic reports were released in the Asian session. Ahead in the day, traders will keep an eye on the Eurozone’s consumer price index for August as of 09:00 GMT.

The Federal Reserve gathers once again meets this week to revise the world’s first economy monetary policy. The regulator is widely expected to leave interest rate rates unchanged in a range between 1.00 and 1.25 percent.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently pricing in a 42.5 percent probability of a 25 basis points rate hike by December.

However, investors will be carefully monitoring Fed’s Chairwoman Janet Yellen speech following the event, in search for further details on the plan to normalize rates and unwind the massive balance sheet in the future.

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