Asian shares were trading mixed on Wednesday as markets awaited the U.S. Federal Reserve's decision on interest rates, the first cut in over four years. The Bank of Japan and the Bank of England are also set to hold monetary policy meetings later this week, with expectations that they will maintain rates.
Japan's Nikkei 225 gained 0.2% in afternoon trading, while Australia's S&P/ASX 200 and South Korea's Kospi showed slight movements. Hong Kong markets were closed for a national holiday, and the Shanghai Composite index edged lower.
The Fed is expected to announce a cut to the federal funds rate, currently at a range of 5.25% to 5.50%, in a bid to stimulate the slowing economy. Lower rates could make borrowing more affordable for consumers and businesses.
Japan reported a trade deficit of 695 billion yen, down 26% from the previous year, with exports rising 5.6% and imports up 2.3%. The Japanese yen has strengthened against the U.S. dollar, impacting trade dynamics.
In the U.S., the S&P 500 and Nasdaq saw marginal gains, while the Dow Jones slipped slightly. Positive reports on consumer spending and industrial production suggested a resilient American economy.
Intel's stock rose following strategic announcements, contributing to market movements. In the bond market, Treasury yields saw a slight increase, reflecting expectations around the Fed's actions.
Energy markets saw a decline in crude oil prices, with benchmark U.S. crude at $70.72 a barrel and Brent crude at $73.19 a barrel.
