Asian stocks rise ahead of Fed

Japanese stocks led Asian markets higher ahead of the Federal Reserve’s final meeting of 2023. Asia-Pacific stocks rose on Tuesday, with Japanese stocks leading gains for a second straight session ahead of the U.S. Federal Reserve’s final meeting of the year. Japan’s Nikkei 225 index rose 0.61 percent after closing up 1.6 percent the previous session. The broader Topix rose 0.28 percent. Producer prices in Japan rose faster than expected, posting an annual increase of 0.3 percent, compared with the 0.1 percent gain economists had forecast. The Fed’s two-day meeting begins on Tuesday, with the U.S. central bank widely expected to keep the federal funds rate steady at 5.25 percent to 5.5 percent. The Japanese yen showed some strength against the dollar, trading nearly 0.1 percent higher at 146.04, as investors will be watching closely to see how the Fed’s decision will affect the dollar/yen pair. Market players will also be looking at US November inflation figures, which economists expect to come in late Tuesday at 3.1%, slightly below October’s 3.2%. Australia’s S&P/ASX 200 rose 0.4% to its highest since September. South Korea’s Kospi rose 0.28%, while the smaller Kosdaq index fell just below the horizontal line. Hong Kong’s Hang Seng index rose 0.48% to recover from a one-year low, but China’s CSI 300 index fell 0.28%.