Asian markets open mixed ahead of key fed rate decision

Mettis Link News reported that Asian bourses were mixed at the Wednesday open as investors awaited the Federal Reserve's rate decision. According to CNBC, Japan's Nikkei 225 slipped 0.34% while Topix rose 0.7%, and Hong Kong's Hang Seng lost 0.18%. Futures hinted at firmer openings in several regional markets, with Nikkei 225 contracts above the prior close of 63,484.1.

Futures priced a 92% chance of a quarter-point Fed hike on Wednesday, according to CME FedWatch, with the current target range at 3.5% to 3.75%. Odds for another quarter-point increase were 45% in October and 30% in December. The White House wants borrowing costs held, and Christopher Phelan, chair of the Council of Economic Advisers, said Tuesday that a hike now would be a mistake as inflation improves.

US consumer prices rose 3.4% year on year in August, down from a 4.2% May peak, with core inflation of 0.3% above forecasts. Oil rose after reports that Saudi Arabia scrapped some cargoes following drone strikes on a major export pipeline, with WTI up 4.4% to $105.83 a barrel, its highest close since May 19. Treasury yields stayed high, with the 10-year just over 5% and the 30-year at 5.369%. US stocks closed lower on Tuesday, with the S&P 500 down 0.45%, as tech shares slipped after weekend talks among AI leaders suggested product release schedules could slow.