Asian shares rise in early trade on June 15

On June 15, Asian shares rose early while tracking Wall Street higher. Nevertheless, investors looked out for a much-anticipated Federal Reserve policy meeting to learn if the central bank would signal any change to the US monetary policy outlook.

In early trading, Japan’s Nikkei (.N225) soared by 0.89 per cent and MSCI, an American finance company’s broadcast index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.23 per cent.

Australian shares, an early driver, was up 1.03 per cent. Chinese blue chips (.CSI300) and Hong Kong (HSI) declined by 0.16 per cent and 0.21 per cent respectively. After a shut down on June 14 for a public holiday, all three have resumed trading.

The S&P 500 (.SPX) and Nasdaq (.IXIC) have closed at record highs overnight with the help of tech names. Dow Jones Industrial Average (.DJI) dropped 0.11 percent. US future stocks, the S&P 500 e-minis rose by 0.11 per cent as well.

Kyle Rodda, a market analyst at brokerage IG said, “We are still getting markets responding positively to the lower volatility in the bond markets and lower yields, and a sense that inflation will be reasonably temporary and the Fed won’t have to slam the breaks on.”

“I suspect in the next 24-28 hours we’ll see a lot of chop, first on the upside, then a little correction as the market positions itself, and then we’re off to the races if we get the green signal light from the Fed Thursday morning,” he added.

Traders will focus on any indication from the meeting’s final statement about whether and when Fed will be tapering its bond buying programme, amidst concerns about inflation as the US economy have started to recover from the pandemic. The two day meeting begins on Tuesday.

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