Asian Markets Mixed as Fed Rate Cut Decision Looms
Asian shares traded mixed on Wednesday as investors awaited what is widely expected to be the US Federal Reserve’s first interest rate cut of the year later today.
Japan’s benchmark Nikkei 225 gained 0.2% to close at 44,995.79. The country’s Finance Ministry reported that exports to the US dropped 13.8% in August compared with the same month a year earlier, marking a fifth straight monthly decline. Car exports led the fall, weighed down by President Donald Trump’s tariffs.
Elsewhere in the region, Australia’s S&P/ASX 200 slipped 0.7% to 8,812.80, while South Korea’s Kospi fell nearly 1% to 3,415.71. Hong Kong’s Hang Seng rose nearly 0.9% to 26,662.13, but mainland China’s Shanghai Composite edged down less than 0.1% to 3,858.74.
On Wall Street, US stocks eased back from record highs on Tuesday as markets braced for the Fed’s decision. The S&P 500 dipped 0.1% to 6,606.76, retreating from its latest record close. The Dow Jones Industrial Average lost 125 points, or 0.3%, finishing at 45,757.90. The Nasdaq composite slipped 0.1% to 22,333.96, one day after hitting a fresh record.
American equities have surged to record levels in recent weeks, fuelled by expectations that the central bank will begin a cycle of rate cuts aimed at supporting growth.
