Tuesday saw the dollar hover at a near five week low while oil eased as traders anticipated a policy meeting at the Federal Reserve that could discuss whether the US economy requires a cash injection.
Only a small percentage of speculators expect the Fed to make further easing moves and gains in the dollar could occur if that view becomes reality. However, it is seen as more likely that the Fed will signal its readiness to act if necessary.
Asian shares climbed following a positive lead from Wall Street and the likes of IBM had pushed the S&P 500 .SPX to a four-month closing high due to optimistic corporate news.
Japan’s Nikkei increased by 0.4 percent to a seven-week high but the concern is still there that the yen could spike again despite last week’s intervention to halt it by the authorities.
“If you ask whether the mood has turned positive, it is hard to say yes”, said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, “even if a worsening in market sentiment has come to a halt”.
Gain by US Treasuries saw Japanese government bonds rise. Any hint the Federal Reserve may be lean toward further quantitative easing is seen as positive for the US debt market.
US crude for October delivery was down 47 cents to $74.39 a barrel ahead of the contract’s expiry later today while gold was steady around $1,278 an ounce.
MSCI’s index of Asian shares outside Japan rose by a further 0.2 percent, with the energy sub-index the biggest riser.
