Asian stock markets started Wednesday largely subdued, with investors adopting a wait-and-see approach just ahead of the US Federal Reserve’s big policy announcement later today.

Japan’s Nikkei 225, after recently crossing the historic 45,000 milestone, opened slightly lower but remained supported near record territory.

South Korea’s Kospi index saw mild profit-taking following its recent surge, while the Hong Kong Hang Seng traded cautiously, making modest gains.

The mood reflected an appetite to stay on the sidelines amid mixed economic signals, uncertain global trade dynamics, and growing anticipation around how the Fed will steer rates in the coming months.

Asian markets: Nikkei 225 and KOSPI 100 trim gains

Tokyo’s Nikkei opened down approximately 0.3%, pulling back from its blistering rally that breached the 45,000 threshold just days ago.

Despite this, investor sentiment remains neutral to positive, helped by August export data that showed only a minimal decline of 0.1% year on year, far better than feared.

However, some selling pressure crept into the technology and manufacturing sectors after recent sharp gains, softening the broader market.

Similarly, South Korea’s Kospi slipped nearly 1.1%, with buyers taking profits after a hot streak helped by the government’s pause on a capital gains tax hike.

Foreign investors exhibited caution, carefully parsing US economic data and currency fluctuations ahead of the Fed decision.

The tech-heavy Kosdaq index also lost ground, down about 0.8%, as traders dialed back risk exposure temporarily.

Mixed moves elsewhere as markets squint at Fed outcome

Hong Kong’s Hang Seng defied the regional retreat with moderate gains, supported by hopes for smoother US-China trade relations and steady corporate earnings.

Australia’s ASX 200 slipped 0.3% amid commodity price softness and export worries, while Singapore’s Straits Times Index faced pressure after government data showed an 11.3% plunge in non-oil domestic exports for August, highlighting ongoing global demand frailties.

India’s stock markets seem poised for a positive session on Wednesday, building on solid gains from recent days.

The Sensex, which rallied sharply to over 82,300 recently, looks ready to maintain momentum as buying interest continues among financials, real estate, and auto sectors.

The Nifty 50 index appears comfortable holding above 25,000, with traders eyeing resistance near 25,500.

Positive signals from ongoing US-India trade talks and optimism around an imminent Federal Reserve rate cut have boosted investor confidence.

While some caution remains given global uncertainties, the overall mood is constructive, hinting at a steady, if not exciting, upward trend in today’s trade.

Wall Street’s slight pullback overnight, with the S&P 500 and Nasdaq losing ground for the first time in days, also tightened investor nerves across Asia.

With the Fed expected to signal its first rate cut since December, markets remain in a holding pattern, eager for clarity on the pace of future easing and the broader economic outlook.

The post Asian Markets open cautious ahead of Fed decision: Nikkei, Kospi slip, Sensex eyes gains appeared first on Invezz