Asian stocks close mostly higher, awaiting Fed minutes

Stock markets in Asia and the Pacific closed mostly higher on Wednesday (4), awaiting the latest monetary policy minutes from the Federal Reserve (Fed), which may show a more moderate stance by the US central bank on raising interest rates. .

Leading the gains in Asia, the Hang Seng index jumped 3.22% in Hong Kong, to 20,793.11 points, while the South Korean Kospi advanced 1.68% in Seoul, to 2,255.98 points, interrupting a sequence of four negative trading sessions.

In mainland China, increases were more contained, amid concerns about the waves of infections that followed the reversal of Beijing’s “Covid-zero” policy. The Shanghai Composite rose 0.22%, to 3,123.52 points, and the less comprehensive Shenzhen Composite had a marginal increase of 0.06%, to 2,005.35 points.

In the afternoon, the Fed will release the minutes of the December monetary policy meeting, when the US BC decided to raise its basic interest rates at a more moderate pace of 50 basis points, after four previous increases of 75 basis points, as part of a strategy to fight rising inflation in the US.

Traders expect the Fed to reaffirm the softer tone on monetary tightening.

In Oceania, the Australian stock market recovered, erasing the losses of the previous session, when it had its worst start to the year since 2019. The S&P/ASX 200 advanced 1.63% in Sydney, at 7,059.20 points.

Back to the Asian region, there were negative exceptions this Wednesday. In its first trading session of 2023, the Nikkei index fell 1.45% in Tokyo to 25,716.86 points as the yield on 20-year Japanese government bonds (JGBs) hit an eight-year high overnight .

In Taiwan, the Taiex recorded a modest loss of 0.18%, at 14,199.13 points.