Asian shares mixed as markets await moves by Federal Reserve

Asian shares mixed as markets await moves by Federal Reserve

SeattlePI.com

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Shares were mixed in Asia on Wednesday as investors awaited the Federal Reserve’s latest assessment on the U.S. economy.

Tokyo fell but other major regional benchmarks were mostly higher on Wednesday, trimming early losses.

The Bank of Japan kept its ultra-supportive monetary policy unchanged, as expected.

Investors also are keeping a wary eye on troubled Chinese developer Evergrande, which is struggling to meet debt payments. The company said it plans to make an interest payment Thursday.

Tokyo's Nikkei 225 index lost 0.5% to 29,690.31, while the Shanghai Composite index gained 0.3% to 3,625.32. Australia's S&P/ASX 200 gained 0.6% to 7,319.40. Shares fell 2% in Taiwan and also declined in Singapore. But benchmarks rose in India, Indonesia and Malaysia.

Markets in South Korea and Hong Kong were closed for holidays.

U.S. futures rose and the yield on the 10-year Treasury edged higher to 1.33% from 1.32% late Tuesday.

The Federal Reserve is expected this week to send its clearest signal yet that it will start reining in its ultra-low-interest rate policies later this year, the first step toward unwinding the extraordinary support it’s given the economy since the pandemic struck 18 months ago.

Wednesday's Fed policy meeting could lay the groundwork for an announcement of a pullback in November.

Global investors also are watching nervously as Evergrande, one of China’s biggest real estate developers, faces a possible default on tens of billions of dollars of debt, fueling fears of possible wider shock waves for the financial system.

Chinese regulators have yet to say what they might do about Evergrande Group. Economists expect them to intervene if Evergrande and lenders can’t agree on how to handle its debts. But any official resolution is expected to involve losses...

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