Asian Stocks Fall as Attention Is Drawn to the Fed Meeting – Asia Market Wrap

With all eyes on the Federal Reserve’s policy announcement, which is expected later on Wednesday, stocks in Asia fell as Wall Street experienced a selloff driven by fresh worries about higher-for-longer US interest rates.

After achieving its worst month since December 2022, Japan’s Nikkei 225 index fell. Due to a public holiday, many markets in the area were closed, which caused Australian shares to drop as well. The S&P 500 experienced its biggest decline since January as speculation that policymakers will maintain rates at a two-decade high for some time was bolstered by an increase in a crucial US labour cost index. Asian trade saw a decline in US stock futures.

The dollar index steadied after seeing its biggest gain in over two weeks on Tuesday, and the yen remained stable. Australia’s 10-year yield increased six basis points early on Wednesday, but Treasury two-year yields marginally declined after hitting their highest point since November.