Nervousness hits stocks ahead of Fed and earnings By Reuters

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© Reuters. FILE PHOTO: Screen shows Nikkei stock average and stock indices outside a brokerage in Tokyo

By Stanley White TOKYO (Reuters) – Asian stocks were little changed on Tuesday, as caution ahead of the US Federal Reserve meeting and corporate earnings offset optimism about a global recovery from the COVID pandemic. -19. MSCI’s broader Asia-Pacific stock index outside of Japan rose 0.01%. Australian shares fell 0.19% and China shares fell 0.08%. Tokyo shares fell 0.23%. E-mini stock futures were up 0.2%. Pan-region fell 0.05%, Germans were down 0.08% and futures were down 0.07%, pointing to a soft start to the European session. Oil rebounded after major oil producers met their demand forecasts, but downside risks remain due to rising COVID-19 cases in India, the world’s third-largest oil importer. Analysts said some investors may be making equity gains, but sentiment remains positive due to rising coronavirus vaccination rates in many countries. “There are two reasons to stay positive about stocks and commodities,” said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui (NYSE 🙂 Asset Management Co in Tokyo. “The world economy is likely to continue to strengthen and many advanced economies are heading for a reopening due to progress in vaccines.” However, despite the hopeful signs, a bullish session on Wall Street failed to inspire Asian markets. The S&P 500 and the Nasdaq closed at record highs on Monday, driven by strong-growth stocks ahead of a flurry of earnings reports this week. It finished 0.18% lower. In extended trading, Tesla (NASDAQ 🙂 fell about 0.4% even after the electric carmaker beat Wall Street expectations for first-quarter revenue. Sentiment for equities in many markets has steadily improved this month on expectations that higher vaccination rates will allow more economies to resume normal activity. However, one area of ​​concern is India, which is battling a surge in coronavirus infections that has overwhelmed its healthcare system. Many investors were on the sidelines ahead of the Fed’s policy meeting ending Wednesday, where the US central bank is expected to confirm that it will keep its monetary policy loose to boost the economy. Bond traders are also closely watching an auction of $ 62 billion in US Treasuries seven years later on Tuesday. The Treasury saw very weak demand in a seven-year debt auction in February, prompting a brutal market sell-off around the world. The notes also saw tepid, albeit improved, demand in March. Before the auction results, seven-year yields rose to 1.2689%, while benchmark 10-year yields rose slightly to 1.5774%. The dollar fell into a tight range as traders avoided taking large positions ahead of the bond auction and Fed meeting. The yen fell from a seven-week high against the dollar after the Bank of Japan cut its prices. Consumer price forecasts just a week after Tokyo and Osaka entered their third state of emergency on a surge in coronavirus infections. rose 0.74% to $ 62.37 a barrel and 0.72% to $ 66.12 a barrel, but the oil rebound could be limited due to concerns about the return of travel restrictions in response to the increase of the coronavirus in India. it was little changed at $ 53,918. The world’s most popular cryptocurrency soared nearly 10% on Monday, after five consecutive days of losses, according to reports that JPMorgan Chase (NYSE 🙂 plans to offer a managed Bitcoin fund. Bitcoin had plummeted nearly a fifth from its all-time high earlier this month. Rival digital asset Ether was stable at $ 2,528.