Asia-Pacific markets experienced a downward trend on Wednesday as investors grappled with recent inflation data from China and prepared for the Federal Reserve’s anticipated interest rate decision.
In Hong Kong, the Hang Seng index fell by 0.56%, while the mainland CSI 300 saw a decline of 0.78%. The movement follows China’s consumer price index, which registered a 0.7% year-over-year increase, the highest since February of the previous year. This uptick follows a modest 0.2% increase recorded in October and aligns with expectations set in a Reuters poll of economists.
Conversely, factory-gate prices in China decreased by 2.2% in November, falling short of the predicted 2% decline and extending a cycle of deflation into its fourth year. This represented a slight improvement from the 2.1% drop observed in October.
Across the region, Australia’s S&P/ASX 200 index showed little movement, remaining flat. In Japan, the Nikkei 225 dropped by 0.22%, while the Topix index remained unchanged. South Korea’s Kospi edged down by 0.12%, although the smaller Kosdaq managed to gain 0.2%.
Market participants are keenly awaiting the Federal Reserve’s crucial interest rate announcement, which is expected to be the year’s final meeting on this matter. Analysts largely anticipate a 0.25 percentage point reduction in the benchmark overnight lending rate, consistent with cuts introduced in September and October.
In the U.S. markets, the S&P 500 finished nearly unchanged, dipping 0.09% to close at 6,840.51. The Nasdaq Composite experienced a slight increase of 0.13%, wrapping up at 23,576.49, while the Dow Jones Industrial Average fell by 179.03 points, or 0.38%, finishing at 47,560.29. This decline in the Dow was primarily attributed to a downturn in JPMorgan shares, driven by higher-than-anticipated expense projections for 2026.
