Asian markets displayed a mixed performance on Wednesday as investors eagerly anticipated the Federal Reserve's upcoming decision on interest rates, which could provide further market direction.
The U.S. Federal Reserve is largely expected to lower interest rates by 25 basis points. However, the focal point for investors will be the unveiling of the Summary of Economic Projections, including the Fed's dot plot, which could offer insights into future monetary policy.
In Asian trading, the U.S. dollar remained stable against the yen and other major currencies, with gold seeing a slight uptick. Meanwhile, oil prices experienced mixed movements following a two-day slump, as industry data revealed a significant decline in U.S. commercial crude oil stocks.
China's Shanghai Composite index rose by 0.7 percent after initially dropping to its lowest point in more than a week on Tuesday, owing to disappointment over the absence of specifics regarding new stimulus measures. Hong Kong's Hang Seng index similarly increased by 0.7 percent.
Japan's Nikkei index was down 0.2 percent as it approached the Bank of Japan's interest-rate announcement scheduled for Thursday. The Japanese central bank is expected to keep its key interest rate unchanged while awaiting more definitive information on domestic wage trends and spending, as well as potential policy shifts by U.S. President-elect Donald Trump.
In corporate news, Honda Motor shares declined nearly 2 percent, whereas Nissan Motor saw a remarkable 22 percent surge following reports of their potential merger discussions.
In Seoul, the stock market advanced, with the Kospi average increasing by 0.86 percent to reach 2,478. Notably, Samsung Electronics gained 1.5 percent, while SK Hynix saw a 1 percent drop.
Australian markets managed to preserve modest gains as healthcare stocks experienced a rise, which counteracted losses in energy stocks and gold miners. The benchmark S&P/ASX 200 index rose 0.25 percent to 8,334.
In New Zealand, the S&P/NZX-50 index fell 0.4 percent to 12,868.
In the United States, markets closed lower overnight as stronger-than-expected November retail sales data intensified debates about the Fed's policy direction for 2025. The Dow Jones Industrial Average fell by 0.6 percent, marking its ninth consecutive decline—the longest losing streak since 1978. The Nasdaq Composite decreased by 0.3 percent, and the S&P 500 dropped 0.4 percent.
European markets experienced a widespread downturn on Tuesday amidst political turmoil in Germany and France. The pan-European STOXX 600 index fell by 0.4 percent, the German DAX decreased by 0.3 percent, and the UK's FTSE 100 dropped 0.8 percent, while France's CAC 40 edged up by 0.1 percent.
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