Calm returns to Asia Pacific stockmarkets

Calm returns to Asia Pacific stockmarkets

Stockmarkets in Japan and China are trading down only slightly, with Japan’s Nikkei 225 falling just 0.19 per cent to 18,264.22.

In China, the Hong Kong Sang Heng index is relatively flat, down only 0.05 per cent to trade at 21,552.69.

The Shanghai Composite index has seen a tentative rise of 0.07 per cent to 3,200.234.

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But analysts warn investors are likely to experience more volatile markets again next week as the US Federal Reserve prepares to meet to decide whether it will raise interest rates.

Angus Nicholson, market analyst at online trading platform IG Group, cited the lack of any major data releases today as “an excuse for relatively muted trading”.

But he said: “Investors are likely waiting till Monday for leads into how the markets are going to trade in the lead up to the Fed meeting next week. The calm seen today is likely only the eye of the storm as volatility is sure to return with a vengeance next week.

“With the probability of a Fed rate hike the highest it has ever been going into a meeting since the Fed began its rate cutting cycle, there is likely to be plenty of movement in the markets whatever the outcome.”