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Bitcoin hovers near record highs

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Dollar steady as traders eye Fed dot plot

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Yen on the defensive as BOJ seen to hold rates

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Gold set for best year since 2010

By Ankur Banerjee

SINGAPORE, Dec 17 (Reuters) - Asian stocks edged higher

and the dollar held firm on Tuesday as traders braced for a

slate of central banks meetings this week that is likely to see

the U.S. Federal Reserve deliver a rate cut and the Bank of

Japan stand pat for now.

Bitcoin, the best-known and the biggest

cryptocurrency, remained nestled near the record high of

$107,821 it touched on Monday. It was last flat at $106,041.

The crypto market has been on a tear since the U.S. election

in early November as traders wager the incoming Trump

administration will usher in a friendlier regulatory

environment. Bitcoin is up 150% in 2024.

In stock markets, Australian market was 0.75%

higher, with Japan's Nikkei up 0.26% and tech-heavy

Taiwan stocks rising 0.5%.

That left MSCI's broadest index of Asia-Pacific shares

outside Japan up 0.18%. The index is set for 10%

gain for the year, its strongest yearly performance since 2020.

Data on Monday showed China's consumption slowed more than

expected in November, pushing stocks lower. On Tuesday, Hong

Kong's Hang Seng Index fell 0.4%, while mainland stocks

eased 0.13% in early trading.

Tony Sycamore, market analyst at IG, said the dire housing

numbers provide further evidence that Beijing's attempts to halt

the downturn in the property sector have yet to stabilise.

"More stimulus measures are desperately needed," said Tony

Sycamore, market analyst at IG, noting that the housing market

remains fragile despite recent policy support.

"However, those measures are unlikely to come until after

the details of US tariffs on China are revealed early next

year," Sycamore said.

Central banks in the United States, Japan, UK, Sweden,

Norway, Indonesia and Thailand all meet this week, with the BOJ,

the Bank of England, Norges Bank and Bank of Thailand expected

to stand pat, while the Riksbank is seen cutting rates.

Bank Indonesia on the other hand is expected to hike

interest rates to support the rupiah, which is rooted

near its lowest in four months.

The spotlight will be on the Fed and especially on the

projection for next year with markets pencilling in a 25-basis-

point cut on Wednesday.

After the cut on Wednesday, markets see about a 37% chance

there will be either one 25 bp cut or none at all through the

whole of 2025, according to the CME FedWatch tool, up from about

21% a week earlier.

Charu Chanana, chief investment strategist at Saxo, siad

the market will be watching for any signs of a "hawkish cut."

"This means that while the Fed is easing policy, it could

signal caution about the pace of future cuts, either through the

committee's updated dot plot or via Chair Powell's press

conference."

The previous dot plot indicated four rate cuts (100 bps) for

2025, but this could be revised to just three or even two cuts

as inflation risks remain elevated, Chanana said.

The dollar index, which measures the U.S. currency

against six rivals, was steady at 106.77 and on course for 5%

gain for the year.

The yen last fetched 154.085 per dollar and

remained on the defensive on slim chances of a hike from the BOJ

this week, with a majority of economists polled by Reuters

expecting the central bank to hold interest rates.

In other currencies, the euro stood at $1.05207,

on course for a near 5% drop in 2024. Sterling was

steady at $1.2689.

In commodities, oil prices were little changed as investors

fretted about Chinese demand ahead of the Fed meeting.

U.S. West Texas Intermediate crude was down 0.23% at

$70.55 a barrel, while Brent crude futures fell 0.15% to

$73.82 a barrel.

Spot gold inched higher to $2,656.71 per ounce, on

course for 29% rise in 2024, its strongest year since 2010.