On Wednesday, Asian shares climbed to highs of one month after being steered by a robust Wall Street on optimism over corporate earnings and prospects the U.S. Federal Reserve would be reaffirming its willingness to wait for an extended period before raising interest rates.
Led by a 1.8 percent rise in South Korean shares, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.1 percent. The Nikkei share average of Japan also posted a sizable 1.5 percent increase. On Tuesday, U.S. stocks rose more than 1 percent with the S&P 500 coming less than two percent below its record peak set last month.
On Wednesday, the Federal Reserve is expected to announce an end to bond-buying stimulus, known as quantitative easing three with the U.S. economy continuing to gather momentum.
“There are some views that the tapering process could be delayed to run through the rest of this year, but it is more likely that the Fed will maintain its current stance of exercising prudence in consideration of any rate hike,” said Lim Dong-rak, an analyst at Hanyang Securities.
The Canadian dollar climbed to its highest level in more than two weeks against the U.S. dollar of C$1.1165 while the euro rose to a one-week high of $1.2765 on Tuesday and last stood at $1.2738 in Asian trade.