Chinese Stocks Fall, Asian Shares Steady Before the Fed – Asia Market Wrap

Asian equities were neutral as investors waited for indications about the Fed’s policy course in its final interest-rate decision of the year.

Chinese stocks slumped as a government report revealed that inflation moved higher in November, dampening prospects for reduced interest rates. Shares fell in Japan, but climbed in Taiwan. Silver advanced after reaching a new high, while Australian bonds continued to fall following this week’s hawkish central bank announcement.

Traders expect the Fed to drop rates for the third time in a row on Wednesday, with the attention shifting to the central bank’s newest dot plot, economic estimates, and statements from Chair Powell. Volatility surrounding the decision has been one of the defining characteristics of equity trading in the last six weeks, outweighing concerns about a potential AI bubble and the impact of Trump’s trade policies.

Silver extended its gain after breaching above $60 per ounce for the first time on Tuesday, with supply constraints and speculations on further Fed monetary easing driving the move. On Wednesday, the metal surged by much to 1.3% to a record $61.4797 per ounce.

Oil had its largest two-day loss in a month as fears over global oversupply weighed on sentiment.