Asian Stock Market Still Showed Mixed Performance Ahead of Fed Interest Rate Decision

In today’s trading, the Asian market showed varied performances as investors awaited the Federal Reserve’s interest rate decision.

Sophia Cruz•Wednesday, June 12, 2024•1 min read

In today’s trading, the Asian market showed varied performances as investors awaited the Federal Reserve’s interest rate decision.

Asian Stock Market Still Showed Mixed Performance Ahead of Fed Interest Rate Decision

Japan, in particular, faced notable economic challenges, including rising inflation and falling wages, raising doubts about the central bank’s ability to move away from near-zero interest rates. The Nikkei 225 index was up 0.3% at 39,155.16.

With the Bank of Japan’s policy announcement approaching, attention turned to how policymakers would address these complex conditions. In a surprising move in March, the central bank increased its benchmark rate from a negative 0.1% to a range of zero to 0.1%, the first hike in 17 years. However, the future remains uncertain amidst ongoing economic headwinds.

Adding to the economic concerns, recent data revealed a 2.4% increase in producer prices in May, driven partly by the yen’s depreciation against the US dollar. This cost rise and a continued decline in real wages adjusted for inflation pose challenges for consumer spending and overall economic growth.

Hong Kong’s Hang Seng index dropped by 1.6% to 18,079.93, while the Shanghai Composite fell 0.9% to 3,022.96 after reopening from a public holiday. Markets remained cautious ahead of an upcoming report on inflation in China due on Wednesday.

Amidst the mixed performance in Asia, gains in the technology sector offered some support to South Korea and Taiwan markets. The Kospi in South Korea increased by 0.8%, while Taiwan’s Taiex surged by 1.2%, signaling resilience in these key tech-oriented economies.

In Australia, the S&P/ASX 200 slipped 1.6% to 7,735.50.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.