Asian Stock Market: Mostly indices trade higher ahead of Fed meet

• Asian stocks edged higher on Tuesday as investors anticipated the Fed’s interest rate decision.
• US Treasury yields can limit the gains on equities.
• US-China talks remain a no show, the relation between Beijing and Washington appears to be at a standstill.

Most of the Asia-pacific stocks locked gains on Tuesday ahead of the FOMC meeting as investors await the interest rates decision and inflation outlook.

MSCI’s broadest index of Asia-pacific shares outside Japan rose 0.26%, after touching its lowest level since mid-December on Monday. 

Japan’s Nikkei 225 gained 0.58%, increasing for the second straight session, following Wall Street overnight gains amid upbeat corporate earnings and caution ahead of a Federal Reserve policy meeting. The sentiments were also supported after reports surfaced that Shionogi & Co had started a clinical trial for an orally administered drug for Covid-19. 

Hong Kong’s Hang Seng Index fell 0.66%, Kospi jumped 0.71%.

The ASX 200 rose 0.3% as investors were optimistic about the slew of earrings from technology and internet companies.

The Shanghai Composite lost 0.4% to its near two-and-a-half month low of 3,454. Investors remained pessimistic over persistent worries over government tighter regulations.

In the recent development, China attacked the US at bilateral talks keeping the relationship between the two superpowers at standstill.