OVERNIGHT

Expecting big moves in Asian stocks in particular and others in general before the Fed's wannouncement this week is like expecting politicians to stop kissing babies. It ain't gonna happen. In early trading overnight, Reuters reported Asian shares steadied early.

With all the anticipation it may turn out like Y2K that was touted to make the Interner disappear back at the turn of the century, a big yawn once the Fed finally fesses up. In other Asian news, the WSJ is reporting related to China's joining a currency basket and weakening its currency:

The Fed is widely expected to raise rates this week amid signs of a strengthening U.S. economy. Meanwhile, China’s economy is going the other direction, with Beijing cutting interest rates and making other moves to loosen monetary policy and spur slowing economic growth.

A U.S. rate increase could hinder that effort. It would likely make the dollar stronger, forcing China to intervene in currency markets to maintain the peg. That means buying yuan, often from Chinese banks, which effectively takes money out of China’s financial system at a time when Beijing is trying to make more available to its businesses and consumers.

China has big problems not to mention one of them is labor unrest and an economy after six straight rate cuts that has responded very little. Higher U.S. Interest rates could turn up the heat a bit more.