Japanese stocks rose in choppy trade on Wednesday, snapping a four-day losing streak thanks to short-covering, while coming central bank meetings and worries that Britain might vote to leave the European Union kept investors on edge.
Short-covering is the polar stock market opposite of profit taking in the media as the the market was down today owing to profit taking. What that really means is they don't have a clue why the market did what it did, since there is short-covering and profiting-taking every day the market is open. So more of the same is most likely more accurate in the face of little news.
With that said, the Nikkei edge up some, 0.38%, to 15,919 after opening down, the Shanghai Composite was up 1.40%, the Hang Send Index 0.27% while the Korean and Australian markets moved down with the Kospi off -0.16% and the ASA 200 dropped -1.08%
China apparently paid a price for its earlier attempts this year to control capital flight out of the country as, the WSJ reported: MSCI said it would admit Pakistani stocks to its Emerging Markets Index for the first time while excluding Chinese A shares, citing the inability of investors to get their money in and out of the country freely as a key reason. But again much seems to be riding on Wednesday's Fed meeting and the same for the upcoming meetings at the BOJ as investors remain cautious over these and the scheduled Brexit vote in the UK.
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