Asian Stocks Down, Investors Digest Chinese Data and Await Fed Policy Decision By Investing.com

© Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Wednesday morning, getting off to a mixed start as short-term sovereign yields retreated ahead of the . Investors also digested the .

China’s edged down 0.15% by 9:58 PM ET (1:58 AM GMT) and the Shenzhen Component inched down 0.08%. The , released earlier in the day, was 53.8 for October, slightly higher than the 53.4 recorded during the previous month.

However, Chinese Premier Li Keqiang warned that the economy is facing new downward pressures amid an appeal to ensure there was adequate winter food supply by stocking up on essentials. Although speculation about the appeal continues, the government has downplayed its significance.

Hong Kong’s edged down 0.12%. South Korea’s fell 0.77% while in Australia, the jumped 1.20%.

Japanese markets are closed for a holiday.

U.S. shares closed at another record high, seemingly resilient to COVID 19 related supply chain and labor upheavals.

Treasury two-year yields fell, with short-term rates falling globally thanks to the dovish statement on Tuesday as it handed down its policy decision. Australian bond yields declined. The U.S. yield curve steepened, while cash treasuries will not trade in Asia due to the holiday in Japan.

All eyes are now on the Fed decision, due to be handed down later in the day. The U.S. central bank is widely expected to announce that it will begin asset tapering, but it is the exact timing of interest rate hikes that have investors divided.

Some expect a hike in 2022, some in early 2023, and others predicted that the Fed would dodge the issue for now.

“The big question will be whether the Fed will signal anything about when the interest rate hikes will start,” Robertson Stephens Wealth Management chief economist Jeanette Garretty told Bloomberg.

“I think they are going to try and avoid that.”

Across the Atlantic, will hand down its policy decision on Thursday.

On the data front, the latest U.S. jobs data, including , will be released on Friday. The is due on Wednesday. Followed by trade data, including and , on Thursday.

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