Stock market today: Asian shares weaker ahead of Federal Reserve interest rate decision
Asian shares are mostly weaker in cautious trading ahead of the Federal Reserve’s looming decision on interest rates
TOKYO — Asian shares mostly declined in cautious trading Tuesday ahead of the Federal Reserve’s looming decision on interest rates.
Japan's benchmark Nikkei 225 dropped 1.1% in morning trading to 33,177.75. Australia's S&P/ASX 200 lost 0.5% to 7,192.40. South Korea's Kospi edged down 0.3% to 2,568.12. Hong Kong's Hang Seng slipped 0.5% to 17,835.44, while the Shanghai Composite fell 0.3% to 3,116.98.
The Fed is due to wrap up a two day meeting on Wednesday. Japan's central bank will meet Thursday-Friday as observers speculate that it might gradually begin to adjust its longstanding negative interest rate policy.
“Market sentiments remained in its usual wait-and-see ahead of the Federal Open Market Committee meeting this week,” said Yeap Jun Rong, market analyst at IG.
Monday on Wall Street, the S&P 500 edged up 0.1% to 4,453.53 and the Dow Jones Industrial Average rose less than 0.1% to 34,624,30. The Nasdaq composite added less than 0.1% to 13,710.24.
Stocks have been see-sawing since early August on uncertainty about whether the Fed will finally end its hikes to interest rates. Higher rates have helped cool inflation from its peak last summer, but they also hurt prices for stocks and other investments while slowing the economy.
Traders almost universally expect the Fed to keep rates steady at its meeting this week. Attention will mainly focus on forecasts Fed officials will publish about where they expect interest rates, the economy and the job market to head in upcoming years.
Traders are betting on a roughly 40% chance the Fed will raise rates again in either November or December, according to data
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