Investing.com-- Most Asian stocks moved in a flat-to-low range on Tuesday amid growing caution before a Federal Reserve meeting this week, while Australian stocks retreated before a Reserve Bank rate decision.
Chinese markets traded sideways as investors digested pledges for more spending and fiscal support from the Communist Party, which convened a top-level meeting on Monday.
Asian chipmaking stocks showed little reaction to U.S. President Donald Trump stating that market major NVIDIA Corporation (NASDAQ:NVDA) will be allowed to sell a more advanced artificial intelligence chip in China. Chinese chipmakers were a mixed bag after the announcement.
Broader Asian markets tracked mild overnight declines on Wall Street, as caution over the Fed and some profit-taking from recent gains weighed. While the central bank is widely expected to cut interest rates by 25 basis points, investors are uncertain over what it will signal on the world’s largest economy.
S&P 500 Futures rose slightly in Asian trade.
Australia’s ASX 200 dips with RBA hold in sight
Australia’s ASX 200 fell 0.2% before the conclusion of a RBA meeting later in the day.
The central bank is widely expected to leave interest rates unchanged for a fourth consecutive session, amid increasing signs of sticky domestic inflation. The
Bets on a hold were furthered by stronger-than-expected consumer inflation prints for the past three months, while the job market also displayed strength. Focus is now on the RBA’s outlook for the coming year, amid growing bets that the central bank will keep rates on hold in the long run.
The RBA cut rates by a cumulative 75 bps this year in what was seen as a shallow easing cycle.
China stocks flat after Politburo meeting; Hong Kong down
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved in a flat-to-low range as investors digested comments from a meeting of the Communist Party’s top policy-setting body, the Politburo.
The Politburo convened a meeting on Monday and pledged to keep expanding fiscal support for the economy, local media reports showed. The body is also likely to maintain its annual growth target at gross domestic product of 5% for 2026, reports said.
Pledges of more support come as the Chinese economy grapples with a prolonged property downturn and weak consumer spending. Capital investment in the country also slowed drastically in recent months.
Hong Kong’s Hang Seng index shed 0.6%, weighed by some losses in local chipmaking stocks as investors fretted over renewed competition from Nvidia. But internet stocks edged higher on the prospect of access to more advanced AI chips.
Broader Asian stocks were mostly lower. Japan’s Nikkei 225 and TOPIX indexes moved in a tight range, with focus remaining on a growing diplomatic spat between Tokyo and Beijing, which showed few signs of easing.
South Korea’s KOSPI fell 0.5%, hit chiefly by a 2% drop in SK Hynix Inc (KS:000660), after the South Korean exchange issued its second formal warning on investing in the Nvidia supplier, citing concerns over a more than 200% spike in valuation over the past year.
Singapore’s Straits Times index added 0.2%, while futures for India’s Nifty 50 index were flat.
