Asian shares mixed before Fed’s rate cuts

Asian shares were mixed on Wednesday as investors awaited the Federal Reserve’s decision on rate cuts, Reuters reported. The yen hit four-month lows on expectations of accommodative policy in Japan.

European markets are expected to open lower, with EUROSTOXX 50 futures down 0.4 per cent and FTSE and US futures both down 0.1 per cent.

Tokyo’s Nikkei is closed for a holiday, but the yen’s weakness lifted Nikkei futures by 0.4 per cent. MSCI’s Asia-Pacific index edged up 0.1 per cent, with Taiwanese shares falling 0.6 per cent and South Korean shares jumping 1.2 per cent.

Chinese shares rose slightly, with the Shanghai Composite gaining 0.5 per cent and Hong Kong’s Hang Seng index up 0.2 per cent. China’s central bank left its benchmark lending rates unchanged.

The dollar rose to a four-month high against the yen at 151.51. Analysts expect the Bank of Japan’s (BOJ) monetary normalisation to proceed slowly, supporting carry trades.

Focus is now on the Federal Reserve’s policy meeting outcome, with expectations of a slightly hawkish tone. Markets have pushed back the timing for the first Fed cut to June or July.

Oil prices retreated from multi-month highs on a strong dollar, with Brent easing to $87.18 a barrel and US crude at $83.21 per barrel. Gold prices remained steady at $2,157.32 per ounce.