Asian shares lower on focus on Fed interest rate cut By Investing.com

Investing.com– Most Asian stocks were in a tight range on Wednesday as investors braced for a Federal Reserve meeting where the central bank is widely expected to cut interest rates.

Regional trading volumes were subdued due to holidays in Hong Kong and South Korea, while Chinese markets moved little, even as trading resumed after a prolonged break.

Asian markets took average cues from a flat overnight session on Wall Street as Fed anticipation deterred any big bets. US stock index futures were slightly positive in Asian trade.

Chinese markets fell after an extended pause on weak sentiment

China and indices barely moved, even as trading resumed after a two-day holiday.

Sentiment toward China remained weak after a series of weak economic readings in recent days showed persistent headwinds for the country’s biggest growth drivers.

China’s benchmarks traded at more than seven-month lows after outperforming regional peers this year.

But investors expect recent signs of a weakening economy to draw more stimulus from Beijing.

Japanese stocks rise, BOJ in focus

Japan’s index was the top performer in Asia, up 0.7 percent, while the index added 0.2 percent.

Local shares recouped some of the previous session’s losses on a stronger yen as investors looked ahead to this week.

The BOJ is expected to keep interest rates unchanged, but is likely to strike an uneasy chord and reiterate plans to raise interest rates further in the coming months.

Japanese data is also available on Friday.

Among majors, Nippon Steel Corp ( TYO: ) rose 2% after Bloomberg reported that the firm won an extension in evaluating the security of its takeover bid for United States Steel Corporation ( NYSE: ).

Asian stocks float with Fed rate cut on tap

Broader Asian markets were little moved as anticipation for later in the day deterred any big trades.

Australia was flat, while India index futures point to a slightly positive open, with the index hitting a record high. The Indian read slightly less than expected in August, data showed on Tuesday.

The Fed is widely expected to cut interest rates, with traders divided over expectations for a cut of 25 or 50 basis points. But bets on a 50 bps cut have been seen rising in recent sessions.

The Fed is also expected to signal the start of an easing cycle, which bodes well for risk-on stock markets.