Stocks cheer upbeat data

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    SHANGHAI/NEW YORK- Most Asian shares rose on Wednesday, extending a rally driven by upbeat Chinese and US economic data, but the dollar, US yields and gold held steady as investors awaited the Federal Reserve’s view on the economy at its policy meeting.

    Following robust industrial output and retail sales data from China and higher US factory production investors are focusing on the Fed’s policy statement due Wednesday, the first since Chair Jerome Powell announced an increased tolerance for higher inflation.

    “The risk is if we see no new developments since his Jackson Hole shoutout, this could have near-term pressure on yields ticking up, gold and precious metals complex lower, dollar higher and general risk-off in US equities,” said Kay Van-Petersen, global macro strategist at Saxo Capital Markets.

    “If we do get a surprise on the accommodative side – we’ve gotten this a few times from smooth Jay (Powell) – then we could get the inverse of all that, including the next big structural break higher in gold.”

    MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.5 percent higher.

    Australian shares gained 0.74 percent and Taiwan’s tech-heavy board added 1.16 percent.

    However, Chinese blue-chips pulled back 0.1 percent as investors booked profits after three days of gains.

    Investors also await Japan’s parliamentary approval of Yoshihide Suga as the country’s next prime minister on Wednesday. Suga will then form a new cabinet.