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GLOBAL MARKETS-Asian shares dip as investors await China data, Fed

Published 2019-04-29, 08:52 p/m
© Reuters.  GLOBAL MARKETS-Asian shares dip as investors await China data, Fed
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* MSCI Asia ex-Japan -0.1 pct

* Japan markets closed as emperor prepares to abdicate

* Investors watching China manufacturing data

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith

SHANGHAI, April 30 (Reuters) - Shares in Asia fell on Tuesday despite another record high close for the S&P 500, as investors await a U.S. Federal Reserve policy decision for clues of whether it will continue to take a "patient" approach to interest rate policy.

Traders were also cautious ahead of readings on China's factory activity (0100 GMT), hoping for more signs that the world's second-largest economy is starting to stabilise in response to a flurry of stimulus measures.

MSCI's broadest gauge of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off 0.1 percent, weighed by weakness in Korean shares .KS11 , which fell 0.4 percent.

Australian equities .AXJO fell 0.3 percent, while New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.3 percent.

Japan's financial markets remain closed for a national holiday as Japanese Emperor Akihito prepares to abdicate on Tuesday in favour of his elder son, Crown Prince Naruhito. wobbly open followed cautious gains on Wall Street overnight that nevertheless lifted the S&P 500 index to an intraday record high of 2,949.52. The index finished up 0.11 percent at a record closing high of 2,943.03. .N

The Nasdaq .IXIC gained 0.19 percent to 8,161.85, also a record closing high, and the Dow Jones Industrial Average .DJI eked out a 0.04 percent gain to 26,554.39.

The quiet start to the week in global equity markets comes ahead of a two-day meeting of the policy-setting Federal Open Market Committee. The committee is set to release its latest statement at 2 p.m. EDT (1800 GMT) on Wednesday.

The Fed is widely expected to leave interest rates unchanged, as it seeks to balance robust economic growth against low inflation. the latest slew of data sending mixed signals to the Fed, U.S. consumer spending rose at the fastest pace in more than 9-1/2 years in March, but core personal consumption expenditures (PCE), the bank's favoured inflation measure, logged its smallest annual rise in 14 months. expect the dovish tone from central banks to continue for the foreseeable future. Given evidence of a recovery in growth, this is very positive for risk assets," analysts at ANZ said in a morning note.

Investors will also be watching manufacturing data in China, which is expected to show a steady but modest expansion in activity for April. yield on benchmark U.S. 10-year Treasury notes US10YT=RR retreated to 2.527 percent as of 2330 GMT Tuesday after rising to a close of 2.536 percent Tuesday on the strong consumer spending data. two-year yield US2YT=RR , watched as a gauge of expectations of rate rises, was at 2.2942 percent, off from a U.S. close Tuesday of 2.298 percent.

Currency markets remained quiet. The dollar was barely changed against the yen at 111.65 JPY= , and the euro EUR= was flat at $1.1185. The dollar index .DXY , which tracks the greenback against a basket of six major rivals, was also unchanged, holding at 97.852.

Oil prices turned lower, after edging higher on Monday as markets attempted to resume a rally interrupted by demands from U.S. President Donald Trump that OPEC raise output.

U.S. crude CLc1 fell 0.14 percent to $63.41 per barrel and Brent crude LCOc1 was down 0.4 percent at $71.75 per barrel.

Gold showed some lustre after dipping Tuesday on the U.S. data. Spot gold XAU= was up 0.13 percent at $1,281.19 per ounce. GOL/

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