Asia-Pacific markets were largely down as investors brace for the U.S. Federal Reserve’s rate decision on Wednesday.
The Fed is expected to approve what would be the 11th interest rate increase since March 2022.
Markets are pricing in an absolute certainty that the Fed will approve a quarter percentage point hike that will take its benchmark borrowing rate to a target range of 5.25%-5.5%. That would push the upper boundary of the federal funds rate to its highest level since January 2001.
In Australia, the S&P/ASX 200 climbed 0.78% and closed at 7,396.8, its highest point since Feburary 2023. Australia’s inflation rate on an annual basis grew 6% in the June quarter, slower than the 7% seen in the first quarter, official data showed.
South Korea’s Kospi led losses in the region and fell as much as 2%, dragged by tech and consumer services stocks.
The index eventually ended the day 1.67% lower and closed at 2,592.36, while the Kosdaq saw a larger loss of 4.18% and finished at 900.63.
In Japan, the Nikkei 225 was down marginally, extending its losses from Tuesday and closing at 32,668.34, while the Topix also sunk 0.1% to end at 2,283.09.
Hong Kong’s Hang Seng index retreated from Tuesday’s rally and inched down 0.31%, while mainland Chinese markets also all fell. The Shanghai Composite was down 0.26% and closed at 3,223.02, while the Shenzhen Component lost 0.48% to end at 10,968.98.
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|---|
| .N225 | Nikkei 225 Index | *NIKKEI | 32668.34 | -14.17 | -0.04 |
| .HSI | Hang Seng Index | *HSI | 19365.14 | -69.26 | -0.36 |
| .AXJO | S&P/ASX 200 | *ASX 200 | 7402 | 62.3 | 0.85 |
| .SSEC | Shanghai | *SHANGHAI | 3223.03 | -8.49 | -0.26 |
| .KS11 | KOSPI Index | *KOSPI | 2592.36 | -44.1 | -1.67 |
| .FTFCNBCA | CNBC 100 ASIA IDX | *CNBC 100 | 8659.49 | 15.42 | 0.18 |
Overnight in the U.S., all three major indexes finished higher, with the Dow Jones Industrial Average continuing to extend its winning streak to 12 days.
The 30-stock index rose 0.08% to mark its longest rally since February 2017, while the S&P 500 added 0.28% and the Nasdaq Composite advanced 0.61%.
Source : CNBC