Asian Shares Mixed As Investors Await Fed Rate Cut

Asian stocks fluctuated before ending mixed on Friday ahead of a widely expected interest-rate cut by the U.S. Federal Reserve next week.

Markets expect a 25-bps cut after separate set of data showed the U.S. core consumer price index and producer price index rose slightly from a month earlier in August.

Gold edged up in Asian trading to reach record levels as the dollar weakened, heading into next week’s FOMC meeting. Oil extended gains for a third day running as storm Francine disrupted Gulf of Mexico production.

Chinese markets ended lower on growth concerns after FICC Investor CN Wire highlighted growing concerns about the economy. The benchmark Shanghai Composite index dropped 0.48 percent to 2,704.09.

Hong Kong’s Hang Seng index rose 0.75 percent to 17,369.09, lifted by technology stocks on Fed rate cut speculation.

Japanese stocks fell notably as the yen’s rise to around 141 per dollar weighed on exporters. Gains in chip-related stocks helped limit overall loses to some extent.

The Nikkei average dipped 0.68 percent to 36,581.76 ahead of a Bank of Japan policy meeting next week. The broader Topix index settled 0.82 percent lower at 2,571.14.

Automakers Nissan, Honda Motor, Mitsubishi Motors and Toyota dropped 1-2 percent.

Tech investor Softbank Group shed 0.8 percent and Fast Retailing, the owner of the Uniqlo brand, declined 1.4 percent. On the positive side, Advantest rose 1.3 percent and Tokyo Electron advanced 1.7 percent.

Seoul stocks ended a choppy session slightly higher ahead of a long holiday weekend.

The Kospi average edged up 0.13 percent to 2,575.41. Hyundai Motor, Korea Gas Corp and Hyundai Steel climbed 2-3 percent while market bellwether Samsung Electronics gave up 2.9 percent and No. 2 chipmaker SK Hynix tumbled 3.6 percent.

Australian markets eked out modest gains, with gold and mining stocks leading the surge. Northern Star Resources jumped 3.7 percent and Fortescue Metals Group soared 5 percent.

The benchmark S&P/ASX 200 inched up 0.30 percent to 8,099.90 while the broader All Ordinaries index ended 0.37 percent higher at 8,323.50.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index finished marginally higher at 12,832.55.

U.S. stocks ended higher overnight despite slightly hotter-than-expected U.S. producer price data and Moderna forecasting lower sales next year.

Data showed jobless claims increased marginally last week while the producer price index for final demand crept up by 0.2 percent in August, matching economists’ expectations.

The annual rate of producer price growth slowed to 1.7 percent from a downwardly revised 2.1 percent in July.

The tech-heavy Nasdaq Composite surged 1 percent and the S&P 500 gained 0.8 percent to end higher for the fourth straight day, while the Dow advanced 0.6 percent.

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