Asian markets turn green; FOMC statement eyed

Equity markets in Asia were higher on Wednesday, with economic data and corporate earnings cheering investors. Japan and South Korea were on top of the chart leading gains.

Australia ASX +29.10 +0.49% 6,005.50 CLOSED

Shanghai Comp +2.06 +0.06% 3,395.40 CLOSED

Hang Seng Index +215.17 +0.76% 28,460.71 OPEN

Nikkei 225 +408.47 +1.86% 22,420.08 CLOSED

TSEC 50 Index +12.56 +0.12% 10,806.36 CLOSED

On the data front, the Caixin/Markit manufacturing PMI for October came in at 51.0, showing no change from its previous month reading. China's official manufacturing PMI for October came in at 51.6, falling short from expected values, rising doubts about demand levels in the future. In Australia, the AIG manufacturing index stood at 51.1, against with a prior reading of 54.2. In Japan, the manufacturing PMI increased to 62.8. Analysts had estimated a 52.5 reading.

On the corporate front, ANA Holdings Inc, one of Japan's biggest airlines, increased its full-year operating profit forecast by nearly 7 percent on Wednesday to 160 billion yen or $1.40 billion for the fiscal year ending March 31 from an earlier estimation of 150 billion yen.

ANA posted an operating profit of 89.6 billion yen in the third quarter, up from a 75.4 billion yen profit in the same period a year earlier.

In other news, automaker Honda Motor Co. Ltd. said profits up to September 30 stood at 174.0 billion yen or $1.544 billion, down 1.7 percent from a year earlier. Earnings per share fell to 96.55 yen or $0.86 from a previous year reading of 98.26 yen.

On Tuesday, the US Conference Board’s consumer confidence advanced to 125.9 in October from a previous 119.8, moving comfortably above analysts’ forecast of 121. The Chicago PMI rose to 66.2, outperforming the September reading of 65.2 and above expectations of 61.

Ahead in the day, investors will monitor the release of ADP nonfarm employment change for October at 12:15 GMT, in anticipation of Friday’s Labor Department data.

The Federal Open Market Committee will reveal its statement at 18:00, but there are no monetary policy changes expected. Interest rates are likely to stay between 1.00-1.25 percent.

Fort Financial Services