Most Asian stocks moved in a flat-to-low range on Tuesday amid growing caution before a Federal Reserve meeting this week, while Australian stocks retreated before a Reserve Bank rate decision.
Chinese markets traded sideways as investors digested pledges for more spending and fiscal support from the Communist Party, which convened a top-level meeting on Monday.
Asian chipmaking stocks showed little reaction to U.S. President Donald Trump stating that market major NVIDIA Corporation (NASDAQ:NVDA) will be allowed to sell a more advanced artificial intelligence chip in China. Chinese chipmakers were a mixed bag after the announcement.
Broader Asian markets tracked mild overnight declines on Wall Street, as caution over the Fed and some profit-taking from recent gains weighed. While the central bank is widely expected to cut interest rates by 25 basis points, investors are uncertain over what it will signal on the world’s largest economy.
S&P 500 Futures rose slightly in Asian trade.
Australia’s ASX 200 dips with RBA hold in sight
Australia’s ASX 200 fell 0.2% before the conclusion of a RBA meeting later in the day.
The central bank is widely expected to leave interest rates unchanged for a fourth consecutive session, amid increasing signs of sticky domestic inflation. The
Bets on a hold were furthered by stronger-than-expected consumer inflation prints for the past three months, while the job market also displayed strength. Focus is now on the RBA’s outlook for the coming year, amid growing bets that the central bank will keep rates on hold in the long run.
Source : Investing.com