Hong-Kong
CNN
—
Asia-Pacific stocks opened higher on Wednesday, trailing US gains as investors awaited the next monetary policy decision from the US Federal Reserve later in the day.
Hong Kong’s benchmark Hang Seng (HSI) index was up 2.3%, leading to gains in the region. Japan’s Nikkei 225 (N225) was up 1.8%, while the broader Topix (TOPX) index was also up 1.8%.
Elsewhere in the region, both the South Korean Kospi and the Australian S&P ASX were up about 1%. In mainland China, the Shanghai Composite was up about 0.5%.
The MSCI Asia Pacific index, which excludes Japanese companies, was generally higher, rising 0.8%. US futures, including both the S&P 500 and Nasdaq, remained flat in Asian trading.
“Asia is trading higher today as risk appetite appears to be returning amid easing volatility around bank stocks, at least for now ahead of the FOMC’s Wednesday planning statement,” said Stephen Innes, managing partner of SPI Asset Management, referring to the Federal Reserve. Open Market Committee – which will announce its decision on interest rates on Wednesday afternoon.
Investors are largely counting on a 25 basis point rate hike and will be listening closely to see if Federal Reserve Chairman Jerome Powell is able to justify the rate hikes while reassuring panicked markets that the Fed is protecting safety and security. of the banking system can maintain.
US stocks closed higher on Tuesday as shares of regional banks recovered from record losses earlier this month.
Shares of troubled lender First Republic (FRC) led the way, rising 30%, recouping much of the losses following the 47% plunge in the previous session. The SPDR Regional Banking ETF (KRE), which tracks a number of small and medium-sized banking stocks, gained 5.8% today.
The impetus came after US Treasury Secretary Janet Yellen said at an event hosted by the American Bankers Association that the federal government was ready to guarantee more deposits if the current banking crisis continues.
— CNN’s Nicole Goodkind contributed reporting