Asian markets predominantly traded higher on Wednesday, following positive outcomes from the monetary policy announcements of the Bank of Japan, People's Bank of China, and the Reserve Bank of Australia. All eyes are now cautiously set on the US Federal Reserve's monetary policy decision due later in the day.
The Bank of Japan made a landmark decision by ending eight years of negative interest rates, ushering in the first-rate hike in 17 years. While the US Federal Reserve is expected to leave interest rates unchanged, its statement could significantly influence the rate outlook. Federal Reserve Chair, Jerome Powell and his colleagues are set to provide an update on their economic and rate projections for the first time since December.
Australian shares were moderately higher on Wednesday, building on gains from the previous two sessions. The benchmark S&P/ASX 200 managed to stay above the 7,700 level, backed by the promising global market trends. Positive growth in the iron ore, finance, and energy sectors compensated for losses in the gold and technology sectors.
In a recently concluded meeting, the Reserve Bank of Australia decided against altering interest rates from their 12-year high, hinting at a cessation of policy tightening, at least for the time being.
Major miners such as Rio Tinto, Fortescue Metals, and BHP Group reported gains, though Mineral Resources experienced a slight decline. Oil stocks including Santos, Woodside Energy, and Origin Energy rose, while Beach Energy suffered losses. In the technological domain, Afterpay owner Block, Xero, Appen, and Zip posted losses, while WisTech Global saw minor growth.
In the banking sector, Commonwealth Bank and ANZ Banking reported marginal growth, while National Australia Bank and Westpac witnessed a near 1% rise each.
Gold miners, Northern Star Resources and Evolution Mining, saw a decline of nearly 2% each. Simultaneously, Gold Road Resources and Newmont declined by almost 3% each, while Resolute Mining showed more than 1% growth.
The Aussie dollar traded at $0.654 on Wednesday. The Japanese market, closed on account of the Vernal Equinox holiday, had posted significant gains on Tuesday.
Elsewhere in Asia, South Korea rose by 1.2%; China, Hong Kong, Singapore, and Taiwan witnessed moderate growth. In contrast, New Zealand, Indonesia, and Malaysia reported marginal losses.
Wall Street stocks also showed a remarkable turnaround during Tuesday's trading after initial pressure. The Dow, the S&P 500, and the Nasdaq peaked at the close of day's trading. Major European markets followed suit, with the French CAC 40 Index, German DAX Index, and U.K's FTSE 100 Index posting gains. Crude oil prices rose for a second consecutive day due to the ongoing assessment of the impact of Ukrainian attacks on Russian refineries.
