Stock market today: Asian shares are mixed ahead of a Fed decision on interest rates
Shares are mixed in Asia ahead of a decision by the Federal Reserve on interest rates
BANGKOK — Shares were mixed Wednesday in Asia ahead of a decision by the Federal Reserve on interest rates.
In Japan, higher inflation and falling wages raised questions about how the central bank can navigate away from near-zero interest rates. The Bank of Japan will issue a policy decision on Friday. In March, it raised its benchmark rate from minus 0.1% to a range of zero to 0.1%, the first such increase in 17 years.
The government reported that producer prices rose 2.4% in May, as the yen's weakness against the U.S. dollar raises costs for imports of fuel and manufacturing components. At the same time, the latest data show real wages adjusted for inflation fell in April for the 25th straight month.
The worry is that the Bank of Japan will be constrained from raising interest rates out of concern that higher prices will depress consumer spending, hurting the overall economy.
Tokyo's Nikkei 225 index lost 0.7% to 38,876.71.
Hong Kong's Hang Seng index sank 1.3% to 17,946,46, while the Shanghai Composite index rebounded, gaining 0.3% to 3,037.47.
Australia's S&P/ASX 200 shed 0.5% to 7,715.50. In Bangkok, the SET was flat.
Gains in technology shares pushed prices higher in South Korea, where the Kospi rose 0.8% to 2,728.17, and in Taiwan, whose Taiex jumped 1.2%.
Trading was subdued Tuesday on Wall Street ahead of a key inflation report and the Federal Reserve's policy decision.
The S&P 500 rose 0.3% to 5,375.32, driven largely by gains in tech stocks. The tech-heavy Nasdaq composite rose 0.9% to 17,343.55. Both indexes set record highs for the second straight day.
Apple surged 7.3% after highlighting its push into artificial
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