Japanese shares rose before a central bank decision on whether to add to record monetary easing, as precision-instrument makers and insurance companies led gains.
The Topix index added 0.5 percent to 1,469.11 as of 9:01 a.m. in Tokyo. The measure slid 1.2 percent on Monday as Chinese equities declined. The Nikkei 225 Stock Average climbed 0.6 percent today to 18,074.76, while the yen weakened 0.1 percent to 120.36 per dollar, halting two days of gains. Investors are focusing on the outcome of the Bank of Japan’s two-day meeting before turning their attention to the Federal Reserve later in the week. The U.S. central bank decides on Thursday whether to raise interest rates for the first time since 2006.
Thirty-three of 35 economists project the BOJ will maintain the current pace of monetary stimulus, while two forecast an expansion. More than a third see the central bank adding to current easing by the end of next month. Inflation in July slowed to zero for the third time this year, increasing pressure on Governor Haruhiko Kuroda. He said in August that the BOJ could meet its 2 percent price target with the current level of stimulus.
China’s stocks fell the most in three weeks on Monday, with the Shanghai Composite Index retreating 2.7 percent after data over the weekend added to concern the economic slowdown is deepening and traders gauged the level of state support for equities.
E-mini futures on the Standard & Poor’s 500 Index advanced 0.1 percent on Tuesday. The underlying equity measure slid 0.4 percent in New York on Monday, with Yahoo Inc. and Alibaba Group Holding Ltd. dropping at least 3.1 percent.
With two days to go until the Fed’s statement, interest-rate futures put the odds of a hike this week at 28 percent, down from more than 50 percent before China roiled markets with its surprise currency devaluation.
Source : Bloomberg