Asian Markets Mostly Lower Ahead Of Fed Policy

(RTTNews) - Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues from the global markets overnight, as traders looked ahead to the US Federal Reserve's monetary policy decision and accompanying statement later in the day. The bank's accompanying statement is likely to provide clues about future rate hikes. Asian Markets closed mixed on Tuesday.

The Fed is widely expected to announce another 75 basis point rate hike as part of its efforts to combat elevated inflation.

The Australian stock market is slightly lower in choppy trading on Wednesday, giving up some of the gains in the previous sessions, with the benchmark S&P/ASX 200 staying above the 6,800 level, following the broadly negative cues from global markets overnight, with a mixed performance across most sectors as traders cautiously await the US Federal Reserve's monetary policy decision and accompanying statement later today.

The latest domestic inflation data came in just below expectations and strengthened prospects for a smaller than 75 basis point interest rate hike next month. Australia's annual CPI jumped 6.1 percent in the second quarter, missing a consensus forecast of 6.3 percent. The quarterly inflation figure accelerated to its highest level in over two decades.

The benchmark S&P/ASX 200 Index is losing 2.10 points or 0.03 percent to 6,805.20, after hitting a low of 6,791.60 earlier. The broader All Ordinaries Index is down 7.90 points or 0.11 percent to 7,017.30. Australian stocks ended modestly higher on Tuesday.

Among major miners, Rio Tinto and BHP Group are edging down 0.4 percent each, while OZ Minerals is edging up 0.5 percent and Mineral Resources is gaining almost 1 percent. Fortescue Metals is losing more than 1 percent.

Oil stocks are weak. Santos is losing almost 1 percent and Beach energy is declining 2.5 percent, while Woodside Energy and Origin Energy are edging down 0.3 percent each.

In the tech space, Zip is surging almost 6 percent and Xero is gaining almost 1 percent, while Afterpay owner Block is slipping more than 4 percent, Appen is edging down 0.3 percent and WiseTech Global is losing more than 1 percent.

Among the big four banks, National Australia Bank and Commonwealth Bank are gaining almost 1 percent each, while Westpac is edging up 0.1 percent. ANZ Banking is edging down 0.5 percent.

Among gold miners, Gold Road Resources, Resolute Mining and Evolution Mining are gaining almost 3 percent each, while Newcrest Mining is advancing 1.5 percent. Northern Star Resources is adding more than 3 percent.

In the currency market, the Aussie dollar is trading at $0.693 on Wednesday.

The Japanese stock market is slightly higher in choppy trading on Wednesday, recouping some of the losses in the previous two sessions, with the Nikkei 225 below 27,700 level, despite the broadly negative cues from global markets overnight, as traders cautiously await the US Federal Reserve's monetary policy decision and accompanying statement later today.

The benchmark Nikkei 225 Index closed the morning session at 27,692.89, up 37.68 points or 0.14 percent, after hitting a low of 27,525.09 and a high of 27,694.46 earlier. Japanese stocks closed modestly lower on Tuesday.

Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is losing almost 2 percent and Toyota is down almost 2 percent.

In the tech space, Screen Holdings and Advantest are gaining almost 2 percent each, while Tokyo Electron is adding 2.5 percent.

In the banking sector, Mizuho Financial and Sumitomo Mitsui Financial are flat, while Mitsubishi UFJ Financial is edging down 0.1 percent. Among the major exporters, Sony and Mitsubishi Electric are losing almost 1 percent each, while Panasonic is declining more than 1 percent and Canon is down more than 2 percent.

Among the other major losers, Nitto Denko is losing almost 3 percent, while Yokohama Rubber, Yamaha, Isuzu Motors, Ricoh and Mitsubishi Motors are all down more than 2 percent each.

Conversely, Astellas Pharma, Nisshin Seifun Group and Central Japan Railway are losing more than 2 percent each.

In the currency market, the U.S. dollar is trading in the higher 136 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong is down 1.5 percent, while China, Singapore, South Korea and Taiwan are lower by between 0.2 and 0.6 percent each. New Zealand and Malaysia are up 0.4 and 0.1 percent, respectively. Indonesia is relatively flat. On Wall Street, stocks moved sharply lower over the course of the trading day on Tuesday. The major averages all showed notable moves to the downside, with the tech-heavy Nasdaq showing a particularly steep drop.

The major averages climbed off their worst levels going into the close but remained firmly negative following the mixed performance seen during Monday's session. While the Nasdaq tumbled 220.09 points or 1.9 percent to 11,562.57, the S&P 500 slumped 45.79 points or 1.2 percent to 3,921.05 and the Dow slid 228.50 points or 0.7 percent to 31,761.54.

The major European markets also moved mostly lower on the day. While the U.K.'s FTSE 100 Index closed nearly unchanged, the French CAC 40 Index fell by 0.4 percent and the German DAX Index slumped by 0.9 percent.

Crude oil prices fell on Tuesday, weighed by an announcement from the Biden administration about more sales from the national oil reserve to fight inflation at the pump. The dollar's rebound from recent losses also contributed the drop in oil prices. West Texas Intermediate Crude oil futures for September ended lower by $1.72 or 1.8 percent at $94.98 a barrel.