Asian shares mixed as Wall Street slips from record highs, focus shifts to Fed rate cut
Asian markets traded mixed Wednesday after U.S. stocks pulled back slightly from record highs, with investor attention fixed on the Federal Reserve’s expected first interest rate cut of the year.
Japan’s Nikkei 225 rose 0.2% to 44,995.79 in morning trading. The Finance Ministry reported exports to the U.S. fell 13.8% in August from a year earlier, marking a fifth consecutive monthly decline as auto shipments slumped under President Donald Trump’s tariffs. Although Washington lowered tariffs on Japanese vehicles and parts this week to 15% from 27.5%, they remain well above the previous 2.5%. Japan’s overall exports were nearly flat in August, slipping 0.1%, as growth to Europe and the Middle East offset U.S. weakness.
Elsewhere in Asia, Australia’s S&P/ASX 200 fell 0.7% to 8,812.80, South Korea’s Kospi slid nearly 1.0% to 3,415.71, and Shanghai’s Composite dipped less than 0.1% to 3,858.74. Hong Kong’s Hang Seng gained nearly 0.9% to 26,662.13.
On Wall Street, the S&P 500 slipped 0.1% from its latest record, the Dow Jones Industrial Average fell 125 points, or 0.3%, and the Nasdaq lost 0.1% after hitting a record high the day before.
Stocks have rallied on expectations that the Fed will begin cutting rates Wednesday to support a slowing job market, which officials now see as a greater threat than inflation pressures from tariffs. While inflation remains above the Fed’s 2% target, investors anticipate further rate cuts through year-end and into 2026.
In corporate news, New York Times Co. fell 1.6% after Trump filed a $15 billion defamation lawsuit against the paper and four journalists. Oracle gained 1.5% amid speculation it could play a role in a deal to keep TikTok operating in the U.S.
The S&P 500 closed down 8.52 points at 6,606.76. The Dow dropped 125.55 to 45,757.90, and the Nasdaq slipped 14.79 to 22,333.96.
In bond trading, the 10-year Treasury yield eased to 4.03% from 4.05%. U.S. crude lost 8 cents to $64.44 a barrel, while Brent fell 9 cents to $68.38. The dollar rose to 146.69 yen from 146.40 yen, while the euro slipped to $1.1852 from $1.1867.
Source: Agency