FXStreet (Mumbai) – The Asian equities are seen trading mixed this Friday, after the Fed reflected a cautious approach to its monetary policy outlook. A widely expected, the Fed acknowledged the recent global market turbulence and noted that it will assess their implications on the US economic prospects.
While we had another central bank event in the RBNZ policy decision, which also turned out more dovish as the Governor Wheeler said, “some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range.”
China stocks continue to slide
The Japanese benchmark index, the Nikkei 225 advances 0.19% to 17,196 and reversed the initial losses on expectations that the BOJ may go for more easing at its policy review meeting held tomorrow. Moreover, strengthening USD/JPY post-Fed also boosts the sentiment around the exports stocks. However, the upside remains capped as the oil prices snapped its overnight rally and turned back in the red.
The Australian markets also climbed into positive territory after a weaker opening following the negative lead from the Wall Street overnight. The overnight rally in the industrial metals and oil prices appear to lift the resource and mining stocks, with BHP Billiton adding almost 1%, Rio Tinto is advancing over 2% and Fortescue Metals is up +6%. Meanwhile, the ASX 200 index rallies 0.66% to 4,978.
While the Chinese equities extend their losing streak and remain in the red as capital outflow worries ahead of the Lunar New Year continues to haunt the markets. The benchmark Shanghai Composite index trades -0.30% at 2,727, near 2-year lows. Shenzhen’s CSI 300 index falls -0.53%, while China A50 index trades -0.27% around 8,770.
(Market News Provided by FXstreet)