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Asian shares mixed on Monday ahead of US Fed meeting | |
(about 5 hours later) | |
Shares in Asia were mixed on Monday ahead of an unscheduled US Federal Reserve meeting later on Monday. | |
The board of governors meeting was called to review the advance and discount interest rates charged to commercial banks, among others. | The board of governors meeting was called to review the advance and discount interest rates charged to commercial banks, among others. |
There has been much speculation around whether or not the Fed will raise its benchmark interest rate in December. | There has been much speculation around whether or not the Fed will raise its benchmark interest rate in December. |
The benchmark is a separate target for the rate at which big banks lend reserves to each other overnight. | The benchmark is a separate target for the rate at which big banks lend reserves to each other overnight. |
Analysts said a move on the advance and discount rate later on Monday could be indicative of a benchmark interest rate rise by the end of the year. | Analysts said a move on the advance and discount rate later on Monday could be indicative of a benchmark interest rate rise by the end of the year. |
China stocks | |
China's mainland stock exchanges - the Shanghai and Shenzhen indexes - said last week that new rules would come into effect on Monday aimed at limiting leveraged bets on the market and reducing speculative behaviour by investors. | |
The intention is to reduce the amount that investors can borrow against their existing holdings - a step that analysts said was responsible and would help avoid market bubbles. | |
Reaction to the new rules was subdued in early morning trade. The Shanghai benchmark was later down 0.61% at 3,608.92. | |
In Hong Kong, the Hang Seng index was down 0.33% at 22,682.14. | |
Elsewhere, Australia's S&P/ASX 200 index closed up 0.39% at 5,276.40. | |
Evan Lucas of IG Markets explained why the Sydney market was the best-performing developed market globally last week. | |
"This is likely to be down to two factors: volatility collapsing on central bank expectations and the fact that yield in Australian or even US dollars is the highest in the Asian world," he said. | "This is likely to be down to two factors: volatility collapsing on central bank expectations and the fact that yield in Australian or even US dollars is the highest in the Asian world," he said. |
However, Mr Lucas said that mining shares in Australia - especially BHP Billiton - could be hit this week after iron ore fell to $44.91 a tonne on Friday - the second-lowest of the year. Iron ore is Australia's biggest commodity export. | |
BHP's Sydney-listed shares closed down 2.1%, while mining giant Rio Tinto's shares finished the trading day down 1%. | |
South Korea's benchmark Kospi index closed up 0.7% at 2,003.7. | |
Japan's benchmark Nikkei index was closed on Monday for a public holiday. | Japan's benchmark Nikkei index was closed on Monday for a public holiday. |