Asian stocks muted
Asian shares were subdued and gold prices hovered near a record high on March 19 as economic concerns and a shifting geopolitical backdrop kept risk appetite in check, while the Japanese yen eased after the Bank of Japan (BOJ) kept interest rates unchanged as expected.
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| On March 19, the Bank of Japan (BOJ) kept interest rates unchanged as expected. Illustrative photo |
Investors will now turn their attention to Bank of Japan Governor Kazuo Ueda’s post-meeting press conference at 06:30 GMT, along with the US Federal Reserve’s policy decision later on March 19, where the central bank is also expected to keep interest rates unchanged.
This gloomy sentiment is likely to continue in Europe, with EUROSTOXX 50 futures up 0.11% and DAX futures almost unchanged.
The yen was at 149.79 per dollar, down slightly on the day as policymakers look to take more time to assess the impact of rising economic risks.
The possibility of a BOJ rate hike has helped the yen gain 5 percent against the dollar this year, hitting a five-month high of 146.545 per dollar last week. Japan’s Nikkei (.N225) was little changed.
After raising interest rates in January, the BOJ agreed to keep its short-term policy rate unchanged at 0.5 percent at its two-day meeting ending on March 19.
Traders will be closely watching comments from Bank of Japan Governor Kazuo Ueda for clues on when the BOJ might raise interest rates again, a decision complicated by the contrast between solid domestic economic data and uncertainty over Japan's external trade policy.
“Ultimately, the question is not ‘if’ but ‘when’ the BOJ will raise rates again,” said Fred Neumann, chief Asia economist at HSBC.
“The next move could come as early as June, as evidence of rising wages grows. However, the uncertain global trade outlook could push the BOJ’s next rate hike to the second half of 2025.”
The euro edged lower but remained near a five-month high it hit on March 18 after the German parliament approved a major spending plan, giving a boost to the leader of Germany’s conservative party and future chancellor. The euro was at $1.093175.
Escalating geopolitical tensions weighed on investor sentiment and markets were little changed, with MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) down 0.27%.
Indonesian stocks (.JKSE) swung between gains and losses in volatile trading on March 19, a day after the country’s stock market posted its biggest drop in nearly three years on March 18, amid concerns over the government’s fiscal strategy.
US stocks fell sharply on March 18 as investors remained cautious ahead of the Federal Reserve's monetary policy decision and assessed the potential impact of tariffs.
“Investors are looking for cues from the Fed tonight (March 19) and then from US President Donald Trump in the coming days,” said Ben Bennett, Asia-Pacific investment strategist at Legal & General Investment Management.
The Fed is the next focus
The BOJ's decision comes hours before the Fed announces its policy decision, where the focus will be on new economic forecasts from policymakers as well as remarks from Fed Chairman Jerome Powell.
The dollar index, which measures the greenback against a basket of six major currencies, held steady at 103.34, hovering near a five-month low it hit in the previous session.
“The Fed, like the markets, desperately needs clarity on trade, tariffs and overall policy,” said Julien Lafargue, chief strategist at Barclays Private Bank and Wealth Management.
“We expect FED Chairman Jerome Powell will avoid uncertain conditions and continue to favor a data-driven approach.”
Traders are pricing in a 58 basis point rate cut this year from the Fed, with the first cut forecast to come in July, according to data from LSEG.
In the commodity market, Brent crude futures fell 0.5% to $70.2 a barrel, while US WTI crude fell 0.54% to $66.53 a barrel.
Gold prices rose to a record high of $3,045.24 an ounce on March 19 as geopolitical concerns spurred safe-haven flows.
| Investors will now turn their attention to Bank of Japan Governor Kazuo Ueda’s post-meeting press conference at 06:30 GMT, along with the US Federal Reserve’s policy decision later on March 19, where the central bank is also expected to keep interest rates unchanged. |
Source: https://congthuong.vn/co-phieu-chau-a-tram-lang-dong-yen-giam-nhe-378994.html
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