Fundamental Comment

Asian stocks volatile ahead of Fed policy decision


Asian stocks witnessed mixed performance on Wednesday after a strong start and a significant rally, where most of the indices ended lower ahead of the Fed's interest rate decision.

Japanese markets were closed due to holiday, making trading volumes rather weak, but this did not prevent Asian stocks from gaining momentum as investors tried to capitalize on the current volatility in technology stocks, especially after yesterday's sharp drop that opened the door for good buying levels.

Expectations that US President Donald Trump is on his way to crackdown on Chinese imports of up to $60 billion have helped to fluctuate in Asian equities today, as G20 meetings have not reached conclusive conclusions on US trade protectionism.

On the other hand, the crisis of the US company Facebook is still weighing on stock markets around the world after the leak of users’ data, which entered the company into a federal investigation.

Facebook shares fell 2.6% at the close of Tuesday’s session on Wall Street, after a drop more than 7% on Monday.

Hong Kong's Hang Seng closed 0.19% lower at 59.72 points and reached 31,490.21 points, while the Shanghai Composite Index plunged 0.29% to 3280.95 points.

The South Korean Kospi Index shed 0.02% to 2484.97 points, while Australia's S&P / ASX 200 index gained 0.23% to 5950.27 points.

The yen rebounded against the dollar amidst current tensions in Asian stock markets, hitting a high of 106.28 yen per dollar after opening today's session at 106.52.

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