Asia markets to eye BOJ decision, weaker dollar, oil prices

THURSDAY, MARCH 16, 2017
Asia markets to eye BOJ decision, weaker dollar, oil prices

Futures in Asia pointed to a mixed Thursday opening, following Wall Street’s higher close after the Federal Reserve raised rates but kept a dovish stance, according CNBC.Com reported.



Japanese market futures were lower than the Nikkei 225's last close at 19,577.38: Futures in Chicago were down 0.52 per cent at 19,475 and Osaka futures fell 1.05 per cent to 19,370.
Over in Australia, the ASX 200 was up 0.1 per cent in early trade.
The Australian government is set to spend up to A$2 billion (Bt54 billion) to expand the output of the Snowy Mountains Hydroelectric scheme by up to 50 per cent to help solve a power crisis.
On central bank watch, the Bank of Japan and Bank Indonesia will announce monetary policy decisions on Thursday
The Federal Reserve raised its benchmark interest rate by 25 basis points to a target range of 0.75 per cent to 1 per cent in a widely-telegraphed move.

The rate hike comes amid growing confidence that the economy is poised for more growth.
The central bank also indicated that it still expects three moves, as each Fed members' expectations for where rates will be in coming years changed little from the last meeting.
"Even though the dot plot is not relevant because so much can change, the Fed reminded us all of the gradual nature of their expected behaviour on this rate hike cycle," said Peter Boockvar, chief market analyst at The Lindsey Group, in a Wednesday note.
US stocks closed higher on Wednesday, as oil prices bounced back and the Fed took a less hawkish stance than expected.
The Dow Jones industrial average was up 0.54 per cent to finish at 20,950.1, the S&P 500 rose 0.84 per cent to close at 2,385.26 and the Nasdaq composite added 0.74 per cent to 5,900.05.
On the energy front, oil prices climbed for the first time in a week on a surprise drawdown in US crude inventories. The International Energy Agency (IEA) also suggested that the Organisation of Petroleum Exporting countries output cuts could create a crude deficit in the first half of 2017, Reuters reported.
The weaker dollar after the Fed raised rates as expected also helped to make the greenback-denominated crude less expensive for holders of other currencies.
Brent crude futures were up 1.8 per cent to settle at $51.81 a barrel, and U.S. crude jumped 2.4 per cent to settle at $48.86.
The dollar index, which tracks the greenback against a basket of major currencies, slipped below the 101 handle to trade at 100.74 early Asian time.
Against the dollar, the yen was stronger at 113.44 and the Australian dollar was stronger at $0.7700, compared to levels around $0.76 seen in the past week.