Asian Shares Rise Ahead Of Fed Meeting

(RTTNews) - Asian stocks advanced on Tuesday, the dollar eased on improved risk sentiment and bond yields dipped as investors braced for a hefty rate hike from the Federal Reserve.

The U.S. central bank is all set to raise interest rates by 75 basis points at the conclusion of its two-day policy meeting on Wednesday, but investors will look for any signals the Fed will begin to taper the size of its rate hikes going forward.

Chinese shares led regional gains amid hopes that the country will probably ease its disruptive COVID-Zero policy by the end of this year.

The benchmark Shanghai Composite index jumped 2.62 percent to 2,969.20 as the Caixin PMI data for China's factory activity came in slightly better than expected.

Hong Kong's Hang Seng index surged 5.23 percent to 15,455.27 despite weak GDP data for the third quarter, with the economy recording its worst quarter in more than two years.

China's yuan hit a near 15-year low against the dollar earlier in the session after the People's Bank of China set the official guidance rate at its lowest level since the global financial crisis of 2008.

Japanese shares eked out modest gains on the back of positive earnings from the likes of Japan Tobacco and Panasonic Holdings. Toyota Motor dropped 1.9 percent after posting weaker-than-expected earnings.

The Nikkei average edged up 0.33 percent to 27,678.92 while the broader Topix index gained 0.47 percent to settle at 1,938.50.

The yen strengthened a little bit after the finance ministry said Japan had spent a record $42.8 billion on currency intervention last month to prop up the yen, the finance ministry said in a statement.

Seoul stocks posted strong gains, with technology and chemical shares pacing the gainers. The Kospi average ended up 1.81 percent at 2,335.22.

Australian markets rallied to close at a seven-week high after the country's central bank stuck with a slower pace of interest rate rises for a second month, but hiked its inflation forecast and trimmed its GDP outlook.

The benchmark S&P/ASX 200 climbed 1.65 percent to 6,976.90 while the broader All Ordinaries index closed 1.63 percent higher at 7,169.60 with miners and financials leading the surge.

New Zealand's benchmark S&P/NZX 50 index slipped 0.19 percent to 11,316.64 on concerns about rising interest rates.

U.S. stocks drifted lower overnight as investors weighed an impending rate hike against solid earnings results.

The Dow dipped 0.4 percent but posted a monthly gain of 14 percent, notching its best month of October on record. The S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite gave up 1 percent.