Asian Stocks Subdued Amid Geopolitical Tensions and Central Bank Watch; Gold Nears Record Highs as Investors Await Fed and BOJ Decisions

Asian stocks experienced minimal movement on Wednesday, March 19, as geopolitical tensions in Gaza and Ukraine, coupled with economic uncertainties, kept risk appetite in check. Gold prices hovered near record highs, reaching $3,029 per ounce, driven by safe-haven flows. The yen weakened slightly ahead of the Bank of Japan's (BOJ) policy meeting, while the euro remained close to its five-month peak after Germany's parliament backed a substantial spending plan. Investor sentiment remained fragile as Russian President Vladimir Putin agreed to pause attacks on Ukrainian energy sites but stopped short of a full ceasefire. The market is awaiting monetary policy decisions from the Federal Reserve (FED) and BOJ. The FED is expected to hold interest rates steady, while the BOJ is expected to maintain rates as well. Investors are focusing on Governor Kazuo Ueda's post-meeting briefing for clues on when the central bank could next raise rates. Traders are pricing in 58 basis points of easing this year from the Fed, with the first cut fully priced in for July.