Asian markets were flat in early trading Wednesday, as investors awaited the U.S. Federal Reserve’s expected interest-rate cut later in the day.
The Fed is widely expected to announce a quarter-percentage-point cut to its benchmark interest rate after it ends its two-day meeting. The rate cut would be the second one this summer, and investors will be closely watching for signals of future cuts.
Meanwhile, Japan’s August exports contracted at a faster pace than expected, likely putting pressure on the Bank of Japan to further ease its monetary policy.
South Korea also followed through with plans to drop Japan from a list of countries receiving fast-track approvals in trade, a reaction to a similar move by Tokyo to downgrade Seoul’s trade status amid a tense diplomatic dispute.
On Tuesday, President Donald Trump suggested a trade deal with China could happen “maybe soon,” but added that it could also come after the 2020 election.
Japan’s Nikkei NIK, -0.18% was about flat, as was Hong Kong’s Hang Seng Index HSI, -0.17% . The Shanghai Composite SHCOMP, +0.25% swung between slight gains and losses, as did the Shenzhen Composite 399106, +0.26% . South Korea’s Kospi 180721, +0.41% rose 0.5% while benchmark indexes in Taiwan Y9999, +0.51% , Singapore STI, -0.42% , Malaysia FBMKLCI, -0.49% and Indonesia JAKIDX, +0.38% largely posted slight gains. Australia’s S&P/ASX 200 XJO, -0.20% was down fractionally.
Among individual stocks, Fast Retailing 9983, +0.65% gained in Tokyo trading while Honda 7203, -0.34% and oil producer Inpex 1605, -4.22% fell. In Hong Kong, AAPL, +0.36% omponent maker AAC 2018, +9.55% surged, while CNOOC 883, -1.56% and food processor WH Group 288, -1.23% declined. Samsung 005930, +1.71% rose in South Korea and SK Hynix 066570, +0.76% advanced in South Korea and Largan Precision 3008, +5.78% gained in Taiwan. Beach Energy BPT, +0.75% gained in Australia, as did clothing retailer Kathmandu KMD, +7.60% after it posted record fiscal-year profits.
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