Asian Shares Mixed As Investors Await Fed Decision

(RTTNews) - Asian stocks ended mixed on Wednesday ahead of the Federal Reserve interest-rate decision later in the day, with a 25-bps rate cut already priced in.

China's Shanghai Composite index rose 0.37 percent to 3,876.34 as the United States and China reached a framework agreement to switch short-video app TikTok to U.S.-controlled ownership.

U.S. President Donald Trump said he would speak to Chinese President Xi Jinping on Friday to confirm the details of the agreement.

Hong Kong's Hang Seng index surged 1.78 percent to 26,908.39, with tech stocks rallying on optimism over artificial intelligence fueled demand.

Japanese markets ended slightly lower as the yen held close to its highest level since July 24 amid divergent BoJ-Fed policy expectations.

A government report released earlier today showed that Japan's trade deficit widened sharply from ¥118.4 billion to ¥242.5 billion in August.

Japanese 20-year bond yields fell after an auction of that tenor drew the strongest demand since 2020.

The Bank of Japan meets on Friday to decide on interest rates but no change in policy is expected due to uncertainties over the domestic political situation and the effects of U.S. tariffs.

The Nikkei average ended 0.25 percent lower at 44,790.38, slipping from a record high reached in the previous session. The broader Topix index fell 0.71 percent to 3,145.83.

Seoul stocks fell sharply as investors locked in profits from recent sharp gains. The Kospi average tumbled 1.05 percent to 3,413.40, snapping an 11-session winning streak, led by losses in chipmakers.

Australian markets ended notably lower as falling iron ore and gold prices weighed on the mining sector.

The benchmark S&P/ASX 200 dropped 0.67 percent to 8,818.50 ahead of upcoming August employment data. The broader All Ordinaries index closed 0.62 percent lower at 9,094.90.

Coal miner Whitehaven Coal rallied 5.2 percent and Yancoal Australia climbed 2.4 percent after BHP said it would suspend operations and cut 750 jobs at a Queensland coking coal mine it shares with a unit of Mitsubishi.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 13,228.38, trimming early losses.

The U.S. dollar tumbled, reaching a four-year low against the euro ahead of the Fed decision. Oil edged lower after rallying for three days.

Gold was down about half a percent after climbing past $3,700 an ounce levels for the first time on Tuesday.

U.S. stocks slipped overnight as a two-day meeting of the Federal Reserve got underway.

Investors ignored data that showed U.S. factory production unexpectedly increased in August and retail sales rose at a brisk pace for the third month in a row.

The Dow dipped 0.3 percent, the tech-heavy Nasdaq Composite finished marginally lower and the S&P 500 slid 0.1 percent.