Tokyo’s Nikkei index declined 2 per cent to 35,828.54 and the Hang Seng in Hong Kong gained 1.4 per cent to 17,661.70 and Australia’s S&P/ASX 200 gained 0.3 per cent to 8,143.00
Shares were mixed in Asia on Tuesday after the Dow Jones Industrial Average set a record as Wall Street braced for Fed’s most anticipated meeting in years.
Tokyo’s Nikkei index declined 2 per cent to 35,828.54 and the Hang Seng in Hong Kong gained 1.4 per cent to 17,661.70.
Markets in mainland China and South Korea were shut.
Australia’s S&P/ASX 200 gained 0.3 per cent to 8,143.00.
Traders are eagerly awaiting the Federal Reserve’s decision Wednesday on interest rates, which it is expected to cut for the first time in over four years. The U.S. central bank has been keeping rates high to tamp down inflation and the main question is how much relief for the economy the Fed will deliver.
The warning is that markets steeped in rich policy expectations are ripe for volatility, Mizuho Bank said in a commentary. Accordingly, it may be best to be braced for policy curveballs that could potentially force market re-pricing.
The dollar declined to 140.56 Japanese yen from 140.61 yen. The yen has gained on expectations that the BoJ will persist in hiking rates after keeping them near zero for years, although it is expected to stand pat at its policy meeting this week.
The BoJ’s upcoming policy meeting is expected to reaffirm its commitment to gradual rate hikes, which could further strengthen the yen soon, Luca Santos, currency analyst at ACY Securities, said in a commentary.
The euro slid to $1.1127 from $1.1135.
U.S. benchmark crude oil increased 49 cents to $70.58 a barrel. Brent crude rose 32 cents to $73.07 a barrel.
