TOKYO: Stocks in Asia were poised to start the month on a positive note as a weaker yen looks set to buoy shares in Tokyo, while traders elsewhere sat tight ahead of the Federal Reserve’s policy decision. The New Zealand dollar soared as jobs data topped estimates. Futures on equity indexes in Japan, Hong Kong and Australia were all higher after the S&P 500 Index rounded out its strongest month since February following a surge in American consumer confidence. Bitcoin soared to a record after CME Group, the world’s biggest exchange operator, said it plans to launch futures trading on the cryptocurrency by year-end. While the Fed is expected to keep rates on hold Wednesday, the policy-setting committee may sound the all-clear for a December hike. An announcement on who will helm the U.S. central bank is due by the end of the week.
The next test for global growth comes Wednesday from a reading on the health of Chinese small and private firms. China’s export-oriented companies probably outperformed the state-owned giants in October, reflecting the mildly stronger global economy. The Caixin PMI is forecast to have held at 51, compared with a larger-than-expected drop in the broader official measure. U.S. President Donald Trump signaled he’ll name a new Fed chair Thursday and markets remain on edge after the first indictments from Special Counsel Robert Mueller, which may may pose a danger to tax reform. The news flow has overshadowed a robust corporate earnings season and fresh data showing the U.S. economy on firm footing. In Europe, Spanish equities outperformed Tuesday as the government in Madrid won the power struggle against Catalan separatists.
