Markets across the Asia-Pacific region traded mixed on Wednesday as investors awaited the Federal Reserve’s interest rate decision, widely expected to deliver a second consecutive 25 basis point cut, while digesting higher-than-expected inflation data out of Australia.
By 12:10 pm AEDT (1:10 am GMT), Australia’s S&P/ASX 200 was down 0.7%, Japan’s Nikkei 225 added 1.4% to a fresh record high, while South Korea’s Kospi 200 also touched record valuations, up 0.7%.
In economic data, Australia’s annual inflation rate rose to 3.2% in September, up from 2.1% in August and ahead of market expectations of 3%, according to fresh data from the Australian Bureau of Statistics (ABS).
“This is the highest annual inflation rate since the June 2024 quarter, when annual inflation was 3.8%,” said Michelle Marquardt, Head of Prices Statistics at the ABS.
The stronger reading added uncertainty to the Reserve Bank of Australia’s policy outlook, as markets weighed whether persistent price pressures could delay further monetary easing.
On Wall Street overnight, the Dow Jones Industrial Average climbed 0.3%, the S&P 500 added 0.2%, and the Nasdaq Composite rose 0.8%, as all benchmarks closed at new record highs.
In commodities, Brent crude oil fell 1.6% to US$63.96 per barrel, while spot gold dropped 0.7% to $3,953.0 per ounce, marking a fresh multi-week low.
In China, the Shanghai Composite eased 0.2% to 3,988.2, retreating from 10-year highs, while the CSI 300 fell 0.5% to 4,692.0.
Hong Kong’s Hang Seng Index declined 0.3% to 26,346.1, and India’s BSE Sensex slipped 0.2% to 84,628.2.
European markets finished higher on Tuesday, with London’s FTSE 100 up 0.4% to a record 9,696.7, while Germany’s DAX edged 0.1% lower to 24,278.6 and France’s CAC 40 fell 0.3% to 8,216.6.
