Investing.com-- Most Asian stocks kept to a tight range on Wednesday as investors hunkered down in anticipation of a Federal Reserve meeting where the central bank is widely expected to cut interest rates.
Regional trading volumes were muted on account of holidays in Hong Kong and South Korea, while Chinese markets moved little even as trading resumed from an extended break.
Asian markets took middling cues from a flat overnight session on Wall Street, as anticipation of the Fed deterred any big bets. U.S. stock index futures were mildly positive in Asian trade.
Chinese markets muted after extended break, sentiment weak
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes barely moved even as trade resumed from two days of market holidays.
Sentiment towards China remained weak following a slew of weak economic readings released over the past few days, which showed persistent headwinds for the country’s biggest growth drivers.
China’s benchmark indexes were trading at more than seven-month lows, having vastly lagged their regional peers this year.
But investors expect recent signs of a weakening economy to draw out more stimulus measures from Beijing.
Japanese stocks rise, BOJ in focus
Japan’s Nikkei 225 index was the best performer in Asia, up 0.7%, while the TOPIX added 0.2%.
Local stocks recouped some losses logged in the prior session on a stronger yen, as investors awaited a Bank of Japan meeting later this week.
The BOJ is expected to keep interest rates unchanged, but is likely to strike a hawkish chord and reiterate plans to raise interest rates further in the coming months.
Japanese consumer inflation data is also due on Friday.
Among major movers, Nippon Steel Corp (TYO:5401) rose 2% after Bloomberg reported the firm had won an extension in the security review of its takeover bid for United States Steel Corporation (NYSE:X).
Asian stocks tread water with Fed rate cut on tap
Broader Asian markets moved little as anticipation of the Fed’s decision, which is due later in the day, deterred any big trades.
Australia’s ASX 200 was flat, while futures for India’s Nifty 50 index pointed to a mildly positive open, with the index sitting in sight of a record high. Indian wholesale inflation read mildly less than expected in August, data showed on Tuesday.
The Fed is widely expected to cut interest rates, with traders split over expectations for a 25 or 50 basis point cut. But bets on a 50 bps cut were seen growing in recent sessions.
The Fed is also expected to signal the start of an easing cycle, which bodes well for risk-driven stock markets.