SE Asia, Europe Stocks Rise

Southeast Asian stock markets rose on Tuesday ahead of a two-day policy meeting of the US Federal Reserve that will be keenly watched by investors for any fresh hints on whether it will raise interest rates again this year. European stocks also rose on Tuesday.

Investors are betting that subdued US inflation and political strains in Washington would limit any rate moves for the rest of the year, Reuters reported.

The Fed is widely expected to keep interest rates unchanged at the meeting, which will discuss its monetary stance and the timing of its long-awaited balance sheet reduction, a plan most likely to be detailed in September.

Officials at the Fed are torn between wanting to start reducing its bond portfolio within the year and waiting for more economic data, said Grace Aller, an analyst with Manila-based AP Securities. "As such, analysts are now pricing in less than 50% chance of a third rate hike this year," she said.

In Southeast Asia, Singapore rose 0.5% to touch a two-year closing high. Oversea-Chinese Banking Corp. gained 1.4%, while Thai Beverage climbed 3.8% to close at its highest in five months.

Philippine shares ended slightly higher after rising as much as 0.5% in early trade, as gains were capped by losses in financial stocks. Metropolitan Bank and Trust Co closed 3% lower, while BDO Unibank dropped 1.1%. Property developer Ayala Land rose 1.3% to hit a record closing high.

Vietnam shares closed 1% higher, their biggest gain in seven weeks, with financials and energy stocks pulling up the index. Thai and Indonesian shares were up marginally.

Nifty Breaches Record

Elsewhere Tuesday, Asian stock markets struggled as the dollar resumed its downward drift, with the focus turning to the Federal Reserve's two-day policy meeting that concludes Wednesday.

India’s benchmark equity index climbed to a record high as the NSE Nifty 50 Index briefly breached the record 10,000 mark amid better-than-expected earnings.

The S&P BSE Sensex Index rose 0.1% to 32,265.85 in Mumbai. Eight out of the 13 indexes compiled by BSE Ltd. advanced, while a gauge of banks is headed for its highest level since January 2002.

Automaker Hero Motocorp Ltd. was the top performer on the 30-share index, ahead of its results Tuesday. The Nifty pulled back after briefly crossing the 10,000 level, paring most of its early gains.

“The markets have crossed a sentimental barrier of 10,000, which is a phenomenal feat in itself," said Nitasha Shankar, senior vice president and head of research at Mumbai-based Yes Securities (India) Ltd.

The corporate earnings season for the April-June period has started on an encouraging note, with the combined net incomes of 119 companies up 11%, better than the 10% growth reported by the sample in the year-ago period, Equinomics Research & Advisory Pvt. said in a note on Tuesday.

In the Eurozone

Europe's main stock markets rose on Tuesday, with miners boosted by high copper prices, as investors welcomed news of Greece's return to international debt markets, dealers said, AFP reported.

London's commodities-heavy FTSE 100 index forged higher as copper struck a five-month pinnacle on keen demand and the flagging dollar.

Resources giant Anglo American saw its share price jump 5.3%, while rivals Antofagasta and BHP Billiton added 3.2% and 2.9% respectively.

In the eurozone, Frankfurt and Paris stocks garnered gains on increasing confidence over Greece, traders said.

Athens on Tuesday returned to debt markets for the first time in three years, with reports saying it was on track to raise funds at a lower cost, marking a symbolic victory for the beleaguered nation.

The Greek news agency ANA said that initial transactions for the five-year government bonds put the yield—the financing cost for the government or the rate of return for investors—at 4.875%.

In foreign exchange Tuesday, the euro held close to a two year high. The dollar has come under pressure on concerns about the future of Trump's economic agenda, a series of weak US data—which have raised questions about future rate rises—and expectations the European Central Bank is set to start tightening policy.

Oil prices rose about half a dollar after global crude producers, meeting in Russia Monday, called for stricter adherence to a agreement to cut output.