Asian shares were mixed on Tuesday as investors awaited the Federal Reserve’s upcoming interest rate decision. The Nikkei index in Tokyo fell 1.03% to 36,203.22, while Hong Kong’s Hang Seng advanced 1.4% to 17,661.70. Markets in mainland China, South Korea, and Taiwan were closed for a holiday.
The Fed is expected to announce its first interest rate cut since March 2022 at its two-day policy meeting starting Tuesday. Markets are divided on the size of the reduction, with some traders shifting bets towards a larger-than-usual rate cut of half a percentage point. In the U.S., the Dow Jones Industrial Average rose 0.55% to a new record high of 41,622.08 on Monday, while the S&P 500 index gained 0.13% to settle at 5,633.09.
The Nasdaq composite lost 0.52% to finish at 17,592.13, weighed down by tech stocks.
Fed decision looms over markets
Shares of Chinese appliance maker Midea Group surged over 9% in their Hong Kong debut, marking the city’s largest IPO in more than three years.
Australia’s markets saw a gain of 0.24% to close at 8,140.9.
Traders also assessed Singapore’s non-oil domestic exports (NDOX) for August, which rose 10.7% from a year ago. India’s wholesale prices for August were anticipated to have gained 1.85% year-on-year, slightly lower than the 2.04% increase in July. The Japanese yen strengthened for a sixth straight session, reaching 140.65 against the dollar—its strongest level since July 2023.
The euro slipped to $1.1127 from $1.1135. In commodity trading, U.S. benchmark crude oil rose 49 cents to $70.58 a barrel, and Brent crude, the international standard, picked up 32 cents to $73.07 a barrel. As financial markets brace for potential shifts in U.S. monetary policy, attention is also turning towards China’s intensifying deflationary pressures.
These developments are poised to influence global markets in the coming weeks.
