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By Ankur Banerjee
SINGAPORE (Reuters) - Asian stocks edged higher and the dollar held firm on Tuesday as traders braced for a slate of central banks meetings this week that is likely to see the U.S. Federal Reserve deliver a rate cut and the Bank of Japan stand pat for now.
Bitcoin, the best-known and the biggest cryptocurrency, remained nestled near the record high of $107,821 it touched on Monday. It was last flat at $106,041.
The crypto market has been on a tear since the U.S. election in early November as traders wager the incoming Trump administration will usher in a friendlier regulatory environment. Bitcoin is up 150% in 2024.
In stock markets, Australian market was 0.75% higher, with Japan's Nikkei up 0.26% and tech-heavy Taiwan stocks rising 0.5%.
That left MSCI's broadest index of Asia-Pacific shares outside Japan up 0.18%. The index is set for 10% gain for the year, its strongest yearly performance since 2020.
Data on Monday showed China's consumption slowed more than expected in November, pushing stocks lower. On Tuesday, Hong Kong's Hang Seng Index fell 0.4%, while mainland stocks eased 0.13% in early trading.
"More stimulus measures are desperately needed," said Tony Sycamore, market analyst at IG, noting that China's housing market remains fragile despite recent policy support.
"However, those measures are unlikely to come until after the details of U.S. tariffs China are revealed early next year," Sycamore said.
Over in South Korea, the Kospi was down 0.57%, taking its yearly losses to about 7%, making it Asia's worst performing market this year.
The market has been under pressure amid political turmoil in the country with President Yoon Suk Yeol impeached and suspended from his duties on Saturday over his short-lived attempt to impose martial law.
On the policy front, central banks in the United States, Japan, UK, Sweden, Norway, Indonesia and Thailand all meet this week, with the BOJ, the Bank of England, Norges Bank and Bank of Thailand expected to stand pat, while the Riksbank is seen cutting rates.
Bank Indonesia on the other hand is expected to hike interest rates to support the rupiah, which is rooted near its lowest in four months.
The spotlight will be on the Fed and especially on the projection for next year with markets pencilling in a 25-basis- point cut on Wednesday.
After the cut on Wednesday, markets see about a 37% chance there will be either one 25 bp cut or none at all through the whole of 2025, according to the CME FedWatch tool, up from about 21% a week earlier.