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 0.64%, as the country saw its inflation rate come down to 6% from the 7% recorded in the first quarter
In Japan, the Nikkei 225 was down 0.16%, extending its losses from Tuesday, while the Topix also sunk 0.18%.
South Korea’s Kospi dropped 0.97%, and the Kosdaq saw a smaller loss of 0.24%.
Hong Kong’s Hang Seng index retreated from Tuesday’s rally and inched down 0.56%, while mainland Chinese market also all fell.
The Shanghai Composite was down marginally, while the Shenzhen Component lost 0.31%.
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%.