Asian shares mixed as Wall Street anticipates interest rate cut

Asian markets displayed mixed results as traders prepared for a significant Federal Reserve meeting regarding interest rates. Tokyo's Nikkei index experienced a decline of 1%, closing at 36,203.22, while Hong Kong's Hang Seng index rose by 1.3% to 17,654.79. Meanwhile, markets in mainland China and South Korea remained closed, and Australia's S&P/ASX 200 saw a modest gain of 0.2%, reaching 8,140.90. Investors are particularly focused on the Fed's decision, with expectations leaning towards a potential half-percentage point rate cut. The anticipation surrounding the Fed's meeting stems from the need for economic relief, as lower interest rates can ease financial pressures but may also contribute to inflation. Recent U.S. economic indicators, including retail sales and industrial output, are set to be released, adding to the market's volatility. On the previous trading day, the Dow Jones Industrial Average rose by 228 points, marking a new all-time high, while the Nasdaq composite saw a slight decline of 0.5%. In individual stock performances, Oracle's shares surged by 5.1%, while Alcoa's stock jumped 6.1% following its announcement to divest from a joint venture. Conversely, major tech stocks like Apple and Nvidia faced declines of 2.8% and 1.9%, respectively, reflecting a broader trend of profit-taking among investors. Currency markets also reacted, with the dollar weakening against the yen, which has strengthened amid expectations of continued rate hikes by the Bank of Japan. As traders navigate these developments, the overall sentiment remains cautious, with many bracing for potential market adjustments based on the Fed's forthcoming decisions.