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Asian shares down in holiday-thinned trade, Fed ahead

Published 05/02/2017, 10:07 PM
Updated 05/02/2017, 10:08 PM
© Reuters.  Asian shares weaker
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Investing.com - Asian markets fell on Wednesday despite Wall Street overnight that were overshadowed by Apple earnings seen as downbeat after the market close and as the U.S. Federal Reserve is slated to give its latest view on interest rates.

In Australia, the S&P/ASX 200 fell 0.25%, and the Shanghai Composite dipped 0.20%.

Shares of Apple suppliers were mixed after the iPhone maker's earnings disappointed even though quarterly earnings beat expectations, revenue fell short of estimates as the company sold fewer iPhones than expected. Apple shares (NASDAQ:AAPL) were down 2.4% in post-market trade.

Among suppliers, Hon Hai was flat and Pegatron shed 0.22%. Hong Kong and South Korea are closed for the Buddha's birthday, and Japan is shut for the rest of the week for the Golden Week holiday.

Economists’ forecast that the Fed will leave its benchmark rate unchanged but investors are likely to parse through the Federal Reserve statement for any hints concerning a June rate hike.

According to investing.com’s Fed rate monitor tool, 62.4% of traders expect the Federal Reserve to hike interest rates in June. Elsewhere, the final round of the French election, scheduled for Sunday May 7, offset weaker than expected economic data as current polls predict an easy victory for pro-EU candidate Emmanuel Macron.

Overnight, U.S. stocks were higher after the close on Tuesday, as gains in the Consumer Services, Industrials and Healthcare sectors led shares higher.

At the close in NYSE, the Dow Jones Industrial Average added 0.17%, while the S&P 500 index climbed 0.12%, and the NASDAQ Composite index added 0.06%.

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