TOKYO: Asian stocks edged up on Tuesday as equity investors prepared for an expected U.S. interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low.Advertisement
Prospective monetary easing by the Fed has been a key factor behind the recent bull run by global equities, particularly U.S. stocks, which have notched up record highs over the past month."Up until now, many market participants had been on the sidelines while the markets factored in the likelihood of the Fed's rate cut," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities, regarding gains by Asian stocks.
Also drawing some attention were U.S.-China trade negotiations due to begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for"goodwill" gestures. The British government said on Monday it assumed there would be a no-deal Brexit because a"stubborn" EU was refusing to renegotiate their departure.