Asian stocks tumble as investors await policy decisions from Japan and the US central bank By Investing.com

© Reuters.

© Reuters.

By Gina Lee Investing.com – Asia Pacific stocks fell mostly on Tuesday morning as investors acted cautiously ahead of central bank policy decisions in Japan and the US Bank of Japan is due to hand over its later, that day. South Korea was down 0.18%, after data released earlier in the day indicated that the country grew 1.6% qoq in the first quarter of 2021. Forecasts prepared by Investing.com had forecast growth 1%, while GDP grew by 1.2. % in the fourth quarter of 2020. In Australia, Hong Kong’s 0.50% decline was down 0.09%. China fell 0.38% while it rose 0.11%. Better-than-expected corporate earnings also gave US equities a boost during the previous session. However, shares of Tesla (NASDAQ 🙂 Inc. fell after the close of business in the US, as the company’s multi-year outlook for growth in deliveries remained unchanged even as it reported earnings better than the expected. The benchmark remained close to its 50-day moving average, although it was below the peaks recorded in March 2021. The increasing number of in emerging economies, such as India and Brazil, also remains a cause for concern. Although some investors may be making equity gains, sentiment remains overall positive thanks to rising COVID-19 vaccination rates in many countries. “There are two reasons to stay positive in stocks and commodities … the global economy is likely to continue to strengthen and many advanced economies are heading for a reopening due to progress in vaccines,” Sumitomo Mitsui (NYSE 🙂 Asset Management Co. told Reuters the head of macroeconomic strategy Masayuki Kichikawa. The United States is due to release its on Thursday, which is expected to show growth strengthening in the first quarter, driven by government stimulus. Biden will also deliver his first speech as president in a joint session of Congress on Wednesday. However, these factors are unlikely to change the Fed’s current dovish stance, as it will undoubtedly do so on the same day. Investors widely expect the central bank to keep rates on hold and asset purchases unchanged. Other investors were also bullish ahead of the Fed’s decision. “I’m a bull,” Kramer Capital Research CIO Hilary Kramer told Bloomberg. Fed Chairman Jerome Powell “will make sure to keep rates low, stay behind rather than try to get ahead of inflation,” he added.

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