Asian shares were cautiously higher on Wednesday as investors paused ahead of the U.S. Federal Reserve's policy decision while oil prices jumped on hopes demand will pick up as many countries lift some of the coronavirus-related restrictions.
“The market narrative remained centered around recent competing themes with stimulus and reopening flagged as large tailwinds...accompanied by concerns about behavioural changes in the household and corporate sectors weighing on growth,” said Matthew Sherwood, head of investment strategy at Perpetual.Markets were looking for any forward guidance from the U.S. Federal Reserve, which is due to issue a policy statement at the close of its two-day meeting on Wednesday.
Analysts said it was unlikely the Fed would make further major policy moves, given the scope and depth of its efforts to counter the economic damage caused by the coronavirus. On Wall Street overnight, investors dumped tech giants despite an earnings beat from Alphabet Inc’s Google , driving all three major U.S. stock indexes into the red.
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