PH stocks fall as investors await Fed policy meeting

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The 30-company Philippine Stock Exchange index closed at 6,848.43, down 4.86 points, or 0.07 percent, while the broader all-shares index lost 4.41 points, or 0.12 percent, to settle at 3,566.48.

Meanwhile, the yen weakened and Tokyo stocks rose Tuesday after the Bank of Japan hiked interest rates for the first time in 17 years as it shifted away from its long-running ultra-loose monetary policy.With inflation consistently holding above officials’ two percent target and recent wage talks ending with bumper rises, the BoJ finally felt confident to pivot from a policy that has been an outlier in the global economy as other countries ramped up borrowing costs.

The move comes as several major central banks this week hold gatherings that will decide on interest rates, including the United States, United Kingdom and Australia. The yen, however, fell to more than 150 per dollar as traders continued to fret over the state of the Japanese economy and the impact a hike could have. Fading expectations for US rate cuts this year added to the greenback’s strength.

Still, there is a concern that tighter Japanese policy could disrupt financial markets as investors switch their cash to Japan in search of better returns as other central banks prepare to begin cutting.There were gains in Sydney, Singapore, Jakarta, Bangkok and Wellington.Investors are also gearing up for the Federal Reserve’s latest policy decision Wednesday.

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