NEWS / Foreign Exchange

Aussie shares get boost

Australian stocks rose on Wednesday as investors bought mining shares on higher base metal prices, but Asian markets were seen subdued ahead of the outcome of the Federal Reserve policy-setting meeting.

The Fed ends its two-day meeting later on Wednesday and, while no interest rate change is expected, investors are keen for clues to further U.S. rate action.

Japanese financial markets were closed for a public holiday and will reopen on Thursday.

Dollar weak

The dollar remained weak on Wednesday, after falling on a report China would stop stockpiling foreign exchange reserves, but traders expected it would bounce before the Federal Reserve's meeting ends later in the day.

More analysts were also taking the view that the dollar's decline was unwarranted and that People's Bank of China Governor Zhou Xiaochuan's comment about China's 1 trillion USD stash of reserves had been incorrectly interpreted.

China stock index rises

China's main stock index rose 0.58 percent to an all-time high on Wednesday, boosted by strong gains in resources and property stocks.

The Shanghai Composite Index climbed in the opening minutes of trade to a high of 3,049.905 points, just exceeding its previous intraday record of 3,049.771, hit in late February.

Analysts said investors were encouraged by the market's strength following an interest rate hike on Sunday, and by news of the launch of more mutual funds that will channel China's vast pool of savings into stocks.