Most Asian Markets Dropped as Fed Decision Loomed but Chinese Data Disappointed

 

Most Asian markets edged lower on Monday (Dec. 16), displaying investor caution before the US Federal Reserve released the rate decision this week. Investors expected the Fed to give a 25-basis-point rate cut on Wednesday (Dec. 18). But the Fed's long-term rate plan still worried investors.

 

China’s stock markets lost after retail sales growth failed to meet expectations. The mainland's Shanghai Composite Index dipped 0.16%. Hong Kong’s Hang Seng Index slid 0.88%. The muted retail sales lowered the regional sentiment, reflecting concerns about China's full recovery.

 

Japan’s Nikkei 225 fell 0.033% as investors awaited the Bank of Japan’s rate decision this week. The BOJ is expected to maintain current interest rates to assess global risks and wage growth prospects for 2024. Japan's factory activity contracted for the sixth month though the services sector showed resilience in December.

 

South Korea’s KOSPI fell 0.22% following President Yoon Suk Yeol’s impeachment over alleged attempts to impose martial law. The finance ministry pledged swift action to stabilize markets and support the economy.

 

As regional subdued sentiment spread, Australia’s ASX 200 closed down 0.56%. Malaysia’s FTSE Bursa Malaysia KLCI slides 0.20%. India’s Nifty 50 falls 0.42%. The only outlier is Singapore's STI Index, which rises 0.15%.