Asian stocks muted as Fed looms, China rallies on stimulus talk By

-- Most Asian stocks kept to a tight range on List of domestic mt4 tradersTuesday as markets awaited more cues from a Federal Reserve meeting this week, while Chinese markets rose sharply after top officials promised more policies to support growth. 

Anticipation of a raft of quarterly earnings in the coming weeks also kept sentiment toward Asian markets muted, as investors awaited more cues on how regional firms were navigating slowing economic growth and business activity.

Markets were also on edge over upcoming central bank meetings in the U.S., Europe, and Japan.

Chinese stocks rally on stimulus promises

China’s and indexes were among the best-performing Asian bourses for the day, rising 2.2% and 1.6%, respectively. Hong Kong’s index surged over 3%, buoyed by locally-listed Chinese stocks.

The gains come after China’s Politburo - the top decision-making body of the Communist Party - promised more policy measures to support slowing economic growth in the coming months. 

Measures will be aimed at the country’s biggest growth engines - real estate and private consumption, both of which have deteriorated substantially over the past three years.

A mix of low valuations and optimism over a rebound sparked heavy buying into Chinese stocks on Tuesday, particularly into the real estate sector. Majors such as Longfor Properties (HK:) and (HK:) rallied over 20% each, and were the best performers on the Hang Seng. 

Optimism over China helped spur some gains in other Asian markets. Australia’s rose 0.3%, while South Korea’s rose 0.1% as data showed that the country’s economy grew slightly more than expected in the second quarter. 

rose 0.5%, with focus turning to an where Bank Indonesia is expected to keep rates unchanged.

Japan’s fell 0.3%, as investors locked in some profits from a strong rally on Monday, while the traded flat. 

for India’s index pointed to a mildly negative start for local stocks, after they fell sharply from record highs over the past two sessions.

Fed, central bank uncertainty keeps markets on edge 

Despite optimism over China, broader Asian markets were largely muted as traders awaited more cues on U.S. monetary policy. While the Fed is widely , its outlook on rates will be closely watched, amid sticky inflation and slowing economic growth.

Beyond the Fed, the is also set to hike rates on Thursday, while the is set to offer more potential cues on its ultra-dovish policy this Friday.

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