Japanese stocks dip in what is a mixed session for Asian equities
Asian investors are feeling a little uneasy about the Fed decision later and it is telling in equities sentiment today. The Nikkei is closing the day lower while the likes of the Hang Seng, Kospi, Jakarta Composite, STI are posting gains on the day. Meanwhile, Chinese equities are also in negative territory with the Shanghai Composite down 0.7%.
On one hand, the Fed is very much expected to hike rates once again. On the other, there's a strong likelihood that they will be more dovish in their tone in the aftermath. Nonetheless, US equity futures are looking to adopt the latter sentiment with E-minis trading up by 0.6% on the day now.
If anything, I'd err more on the side that the Nikkei and Chinese stocks are more of the exception as other risk assets are still holding up on the day i.e. aussie, kiwi, oil. Still, the lackluster performance by Japanese stocks and tepid Treasury yields are helping to underpin the yen as we approach European trading. USD/JPY sits at 112.38 currently, a little lower on the day.
