Asian shares are lower, with rate cuts in focus; Hong Kong escapes weak China data by Investing.com

Investing.com– Asian stocks moved little in light holiday trading on Monday, heading straight to a Federal Reserve meeting this week where the central bank is expected to cut interest rates.

Hong Kong fell on a wave of weak mainland economic data released over the weekend.

But regional trading volumes were limited due to holidays in China, Japan and South Korea.

Asian markets took some positive cues from a strong performance on Wall Street last week, where growing optimism about lower interest rates sparked strong gains. And they neared record highs on Friday.

U.S. stock index futures were lower in Asian trade, showing little reaction to reports of a second assassination attempt on Republican presidential candidate Donald Trump.

Hong Kong shares slide on weak China data

Hong Kong’s index fell 0.6 percent, weighed down by losses in mainland shares following a string of weak economic readings from China.

Data released over the weekend showed Chinese and fell less than expected in August.

rose, while falling for another consecutive month.

The readings raised concerns about a prolonged slowdown in Asia’s biggest economy, further dampening sentiment on national and regional markets.

While markets in mainland China were closed for the day, they are likely to fall sharply when they reopen on Thursday.

Asian stocks fell on rate cut speculation

Broader Asian markets held in a tight range amid speculation about US interest rates.

Australia rose 0.5 percent, while futures for India’s index pointed to a flat open.

It is expected to cut interest rates at the conclusion of a meeting on Wednesday.

But traders are only spread by how much the Fed will cut.

Traders price with a 50% chance of a 50 basis point discount and a 50% chance of a 25bps discount.

Still, the Fed is likely to begin an easing cycle on Wednesday, with lower rates presenting a more accommodative environment for stocks.