Asian markets are heavily down before the Fed rate decision; Australian inflation fell in the second quarter.
Asia-Pacific markets tumbled heavily as investors prepared for the Fed’s rate decision on Wednesday.
The Fed is expected to approve the 11th rate hike since March 2022.
Markets are pricing in with absolute certainty that the Fed will approve a quarter-point increase that will bring the benchmark borrowing rate to the 5.25-5.5 percent target range. That could push the federal funds rate cap to its highest level since January 2001.
In Australia, the S&P/ASX 200 rose 0.64 percent as the country’s inflation rose 6 percent year-on-year in the June quarter. But it’s still slower than the 7 percent seen in the first quarter, according to official data.
In Japan, Nikkei 225 slid 0.16 percent, widening Tuesday’s losses, while Topix fell 0.18 percent.
South Korea’s Kospi fell 0.97 percent and the Kosdaq saw a smaller loss of 0.24 percent.
Hong Kong’s Hang Seng index pulled back from Tuesday’s rally and fell 0.56 percent, with the mainland Chinese market also slipping. The Shanghai Composite Index fell marginally, while the Shenzhen Composite Index lost 0.31 percent.