Asian Stock Market: Trades lower amid the cautious mood, all eyes on Fed rate decision
|- Most Asian equities trade lower on Tuesday as markets turn cautious ahead of the key events.
- Positive news from major developers in China fails to lift market sentiment.
- The Federal Reserve (Fed), Bank of Japan (BoJ) monetary policy meetings will be in the spotlight this week.
Asian stock markets edge lower on Tuesday amid the cautious mood in the market ahead of the Fed interest rate decision. announcement. Investors are concerned that the Fed's higher-for-longer interest-rate narrative could negatively impact US consumers.
At press time, China’s Shanghai is up 0.02% to 3,126, the Shenzhen Component Index declines 0.73% to 10,126, Hong Kong’s Hang Sang gains 0.02% to 17,933, South Korea’s Kospi drops 0.41% and Japan’s Nikkei falls 0.99%.
Positive news from major developers in China failed to lift market sentiment on Tuesday. Country Garden received bondholder approval for the last of eight local notes on which it sought to extend repayments, while Sunac obtained creditor approval for its debt restructuring plan.
In Japan, the Bank of Japan (BoJ) will announce the interest rate policy on Friday. Market players will take cues from signals that BoJ is exiting its ultra-loose policy sooner than initially assumed, after remarks by Governor Kazuo Ueda that sent rates surging.
Moving on, market players will keep an eye on the Fed interest rate decision on Wednesday at 18:00 GMT. Fed Chairman Jerome Powell will later hold a press conference and might offer hints about the ‘dot plot’ and inflation expectations. Later this week, the attention will shift to the BoJ monetary policy meeting on Friday.
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