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 slight increase of 0.2% to 8,140.90. Investors are particularly focused on the Fed's decision, with expectations leaning towards a potential half-percentage point rate cut. In the U.S., the stock market showed mixed performance, with the Dow Jones Industrial Average rising by 228 points, or 0.6%, reaching a new all-time high. Conversely, the Nasdaq composite fell by 0.5%, influenced by declines in major technology stocks such as Apple and Nvidia. Notably, Oracle's stock surged by 5.1%, while Alcoa's shares jumped 6.1% following its announcement to divest from a joint venture. Traders are adjusting their strategies in anticipation of the Fed's decision, which could provide economic relief but also raise concerns about inflation. The dollar weakened against the yen, which has strengthened amid expectations of the Bank of Japan's commitment to gradual rate hikes. The Bank of Japan is expected to maintain its current policy stance in its upcoming meeting. In commodity markets, U.S. benchmark crude oil prices increased, reflecting broader market trends. As the global economy navigates these developments, the focus remains on how central banks will respond to economic pressures and market expectations.