Asia-Pacific markets saw a mostly negative session on Tuesday as investors reacted to Wall Street losses and awaited the U.S. Federal Reserve’s upcoming policy decision. Japanese markets were a rare bright spot, while other major indices in the region slipped modestly. Traders are approaching the Fed’s announcement on December 10 with caution, keen to see if interest rates will be reduced further.
The Federal Reserve is widely expected to lower rates by 25 basis points, bringing the Federal Funds rate to a range of 3.5%-3.75%. Analysts suggest this could mark a shift toward a more data-dependent stance in the coming months. “We’ve cut, and now we need to watch the data,” said Stephen Kolano, chief investment officer at Integrated Partners, noting softening labor market conditions may influence future policy moves.
In Japan, the Nikkei 225 managed a modest gain of 0.14% to 50,655.1, with tech stocks leading the recovery. Konica Minolta jumped 5.72%, while semiconductor manufacturer Disco Corp climbed 4.66%, offsetting broader market weakness. Meanwhile, South Korea’s Kospi dipped 0.27%, though its smaller Kosdaq index rose slightly by 0.38%.
Elsewhere in the region, the Hang Seng index in Hong Kong tumbled 1.29%, leading declines in Asia, while mainland China’s CSI 300 fell 0.51%. India’s Nifty 50 and BSE Sensex both recorded losses of around 0.25%, and Australia’s S&P/ASX 200 fell 0.45% after the Reserve Bank of Australia kept interest rates steady at 3.6%, citing persistent inflation risks.
Investors also monitored U.S. markets, where S&P 500 futures were slightly higher following news that Nvidia can ship its H200 chips to approved Chinese customers under a deal benefiting the U.S. government. Despite this, U.S. indices were mostly lower overnight, with the Dow Jones shedding 215.67 points and the S&P 500 down 0.35%, adding to cautious sentiment in Asia-Pacific markets ahead of the Fed’s rate announcement.
source: cnbc