Asian Stock Market: Grinds lower, focus on Fed, BoJ decisions

Most Asian stock markets trade in negative territory as markets turn cautious ahead of key events.
The headlines of more Chinese stimulus plans fail to impress Chinese equities.
Investors are preparing for the Bank of Japan's (BoJ) rate decision scheduled for Friday.

Lallalit Srijandorn FXStreet

Most Asian stock markets trade in negative territory on Wednesday as market participants await the highly anticipated Federal Reserve (Fed) meeting later in the day. At press time, the Nikkei down 0.07%, Shanghai drops 0.37%, Hang Sang fell 0.85%, and the Kospi Index down 1.78%. While, the Nifty50 rises 0.58%.

The headlines of more Chinese stimulus plans fail to impress Chinese equities on Wednesday. The news agency Xinhua reported on Tuesday that policymakers would take up economic policy adjustments, strengthening confidence and mitigating risks after the world's second-largest economy expanded at a sluggish rate in the second quarter as demand fell.

In the meantime, Japanese stocks post modest gains. Investors are preparing for Friday's upcoming interest rate decision by the Bank of Japan (BoJ). BoJ Governor Kazuo Ueda put an end to speculation of a Yield Control Curve policy change and stated that there was still work to be done before the inflation objective of 2% was reached. These comments suggest that Japanese policymakers will likely maintain a dovish stance and are expected to keep their monetary policy unchanged on Friday.

Additionally, the Cabinet Office said that Japan’s inflation is seen at around 0.7% from 2027 to 2032, while for 2023 is expected at 2.6% and 1.9% in 2024. In terms of economic growth, the GDP figure is seen at 1.3% in 2023 and 1.2% in 2024.

The oil price currently trades around $79.00 a barrel after retreating from $79.90 a barrel, the highest since April 19. The headlines surrounding additional Chinese stimulus plans will be in focus as China is the world's largest oil importer, and its economic recovery supports the oil price.

Market participants will focus on the Fed, European Central Bank (ECB), and BoJ rate decisions later this week. Also, the developments surrounding Sino-US relations will remain in focus.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD stays defensive below 0.7150 after Chinese data

AUD/USD remains on the back foot below 0.7150 in the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. Mixed Chinese activity data for August also fail to inspire the Aussie.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold regains $4,300 as traders await FOMC meeting

Gold regains $4,300 in the Asian session on Tuesday, but remains vulnerable near a one-month low, touched the previous day. Fed rate-hike expectations and inflation concerns remain supportive of elevated US bond yields, underpinning the US Dollar and weighing on the non-yielding bullion. Bears, however, might wait for the outcome of a two-day FOMC meeting on Wednesday before placing fresh bets.

WTI rises above $98.50 amid Middle East supply fears

West Texas Intermediate oil price extends its gains for the second successive day, trading around $98.60 per barrel during the Asian hours on Tuesday. Crude oil prices appreciate as traders continue to navigate heightened uncertainty over global supply.

Hard assets are entering their next explosive phase – Are you positioned?

It’s official: Commodities and Hard Assets have become the best-performing asset class of 2026. In a year defined by persistent inflation, geopolitical conflict, rising sovereign debt and intensifying supply disruption, capital is rotating aggressively into the one area governments cannot print and central banks cannot manufacture: scarce physical assets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.