Asian stock markets showed a mixed performance on Wednesday as investors braced for the Federal Reserve’s final meeting of the year. Japan’s Nikkei 225 rose marginally, buoyed by tech gains, while Hong Kong’s Hang Seng Index slipped due to weakness in Chinese stocks. Broader regional markets, including Australia’s ASX 200, reflected cautious sentiment as trading volumes thinned ahead of the holiday season.
Investors are closely watching the Fed’s policy decision for signs of its stance on interest rates heading into 2024. While no immediate rate hike is expected, Fed Chair Jerome Powell’s commentary will be scrutinized for clues about inflation control measures and economic resilience. Analysts warn that uncertainties around China’s slowing growth and the impact of rising borrowing costs in developed markets continue to weigh on investor sentiment.
Despite the day’s fluctuations, market participants remained cautious, positioning portfolios for potential surprises. Currency markets also reflected subdued trading, with the dollar holding steady against major peers.
