Asian equity markets ended on a mixed note on Wednesday as investors looked ahead to the Federal Reserve’s interest-rate decision later in the day, with a 25-basis-point cut widely anticipated and already priced in.
China and Hong Kong stocks lead gains
China’s Shanghai Composite Index advanced 0.37% to close at 3,876.34 after the United States and China reached a framework agreement to transition short-video app TikTok to US-controlled ownership.
US President Donald Trump said he plans to speak with Chinese President Xi Jinping on Friday to confirm the deal’s details.
Hong Kong’s Hang Seng Index surged 1.8% to 26,908.39, its highest close since July 2021, supported by gains in technology shares.
The Hang Seng Tech Index climbed 4.2%.
Baidu jumped 15.7% to HK$131 after Arete Research Services upgraded its rating to buy from sell, while Goldman Sachs analysts highlighted the company’s AI potential.
Meituan gained 4.9% to HK$105.20, JD.com rose 5.2% to HK$136.70, Alibaba advanced 5.3% to HK$161.60, and Tencent added 2.6% to HK$661.50 after raising ¥9 billion (US$1.3 billion) in a three-tranche offshore yuan bond offering, its first in four years.
Japan slips as the Yen strengthens
Japanese markets retreated slightly as the yen held near its strongest level since late July, reflecting policy divergence between the Bank of Japan and the Fed.
The Nikkei 225 slipped 0.25% to 44,790.38, pulling back from a record high set the previous session, while the broader Topix shed 0.71% to 3,145.83.
Data released earlier showed Japan’s trade deficit widened to ¥242.5 billion in August from ¥118.4 billion previously.
Separately, a 20-year government bond auction drew the strongest demand since 2020, pushing yields lower.
The Bank of Japan is scheduled to meet on Friday, though no policy shift is expected given domestic political uncertainty and the impact of US tariffs.
Other regional markets
Seoul’s Kospi Index dropped 1.05% to 3,413.40, halting an 11-day winning streak as investors booked profits, particularly in semiconductor stocks.
In Australia, weaker commodity prices dragged equities lower.
The benchmark S&P/ASX 200 fell 0.67% to 8,818.50, while the All Ordinaries declined 0.62% to 9,094.90, as investors awaited key employment data due Thursday.
Indian equities extended gains on Tuesday, with benchmark indices closing higher for a second straight session as strength in auto, banking, and IT stocks outweighed weakness in FMCG and metals.
The Sensex advanced 313.02 points, or 0.38%, to settle at 82,693.71, while the Nifty climbed 91.15 points, or 0.36%, to close above the 25,300 mark at 25,330.25.
Tata Consumer, SBI, BEL, Kotak Mahindra Bank, and Maruti Suzuki led the gainers on the Nifty, while HDFC Life, Tata Steel, Bajaj Finserv, Titan Company, and SBI Life Insurance were among the key laggards.
Auto, PSU banks, IT, and oil & gas rose between 0.5% and 2.6%, while FMCG, consumer durables, telecom, and metal indices slipped into the red.
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