Asia-Pacific markets traded in mixed territory on Tuesday, following a cautious session on Wall Street overnight as global investors awaited key monetary policy decisions from the United States Federal Reserve (Fed) and the Reserve Bank of Australia (RBA).
Market participants are widely anticipating the Fed to cut 25 basis points (bp) at its 9-10 December meeting, while traders in Australia prepared for what is likely to be an extended pause from the RBA.
By 11:40 am AEDT (12:40 am GMT), Australia’s S&P/ASX 200 slipped 0.4%, Japan’s Nikkei 225 fell 0.3%, while South Korea’s Kospi 200 edged 0.2% lower.
Among data releases, National Australia Bank's monthly business confidence survey dropped 5 points to 1 in November, while business conditions eased 3 points to 7, as weaker profitability and trading outweighed a small lift in employment.
Wall Street’s major benchmarks retreated on Monday, with the Dow Jones Industrial Average falling 0.5%. The S&P 500 eased 0.4%, and the Nasdaq Composite slipped 0.1%, as higher Treasury yields and uncertainty ahead of the Fed meeting kept risk appetite muted.
Commodity markets also weakened. Brent crude fell 2% from recent two-week highs to settle at US$62.49 per barrel.
Spot gold dipped 0.2% to US$4,190.66 per ounce, giving back part of last week’s gains.
Mainland Chinese equities held firm on Monday. The Shanghai Composite rose 0.5% to 3,924.1, while the CSI 300 gained 0.8% to 4,621.8.
In contrast, Hong Kong’s Hang Seng Index declined 1.2% to 25,765.4, dragged lower by technology and property stocks. India’s BSE Sensex advanced 0.7% to 85,102.7.
European markets closed mixed on Monday. London’s FTSE 100 slipped 0.2% to 9,645.1, while Germany’s DAX edged up 0.1% to 24,046.0. France’s CAC 40 dipped 0.1% to 8,108.4, with energy and consumer stocks leading the minor decline.
