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Asian Stocks Swing as Traders Bide Time Ahead of US Rate Decision

Investors anticipate a 25-basis-point US Federal Reserve rate cut amid mixed Asia-Pacific market reactions and economic data showing export declines and labor market weakness.

  • The Dow Jones Industrial Average fell by 125.55 points, closing at 45,757.90 as investors awaited tonight’s Federal Reserve interest rate announcement.
  • Markets entered a holding pattern due to anticipation of a 25-basis-point US interest rate cut amid mixed signals from economic data and potential Fed member dissent.
  • Asian stock markets showed mixed performance with gains in Tokyo and Hong Kong contrasted by losses in Seoul and Shanghai, while Chinese tech stocks rallied following upgrades and a surge in Tencent's bond sale.
  • Josh Gilbert highlighted that a key concern is the Federal Reserve taking a less accommodative tone than investors anticipate, while Chair Powell is expected to emphasize potential challenges in labor markets and the central bank’s readiness to implement additional rate cuts if necessary.
  • The Fed's likely rate cut and Powell’s tone will influence traders' expectations for additional easing and shape global market outlook amid persistent inflation and economic caution.
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The Killeen Daily HeraldThe Killeen Daily Herald
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Asian stocks swing as traders bide time ahead of US rate decision

Asian stock markets were mixed Wednesday as investors bided their time ahead of an expected US interest rate cut later in the day.

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Bloomberg broke the news in United States on Tuesday, September 16, 2025.
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