By Gina Lee
Investing.com – Asia Pacific stocks were mostly down on Wednesday morning, but the moves were quiet ahead of a highly anticipated airing later in the day.
Japan was down 0.31% at 10:29 PM ET (2:29 AM GMT). May trade data was lower than expected, with year-on-year growth of 49.6% and contraction to JPY187.1 billion. However, 27.9% better than expected grew year on year.
South Korea gained 0.60% and Australia rose 0.24%. Australian Trade Minister Dan Tehan said on Wednesday that the country is beefing up its legal arguments before taking its trade dispute over wine tariffs with China to the World Trade Organization (WTO) for arbitration.
The WTO action is “under active consideration” and Australia “will make a decision very soon,” Tehan added.
The Hong Kong index was down 0.16%.
China fell 0.49% and fell 0.55%. The economic data, including and, will be published later in the day.
Investors eagerly await the Fed’s decision for clues on when the asset downsizing will begin as the US continues its economic recovery from COVID-19. New York Governor Andrew Cuomo and California Governor Gavin Newsom rose up in their states.
Although some investors are using the so-called dot plot to predict an interest rate increase in 2023, the central bank is unlikely to indicate a reduction in bond purchases until later in 2021.
“The outlook looks pretty positive, but a lot of investors are asking for more clarity on when we’re going to start the fine-tuning,” Kayne Anderson Rudnick portfolio manager and senior research analyst Julie Biel told Bloomberg.
“There are many nerves that we are going to wait too long, the economy is going to overheat and then we are going to have to reduce everything at the same time, so there are many pressures in dueling,” he added.
Other central banks that must make monetary policy decisions include Thursday and Thursday, followed by Friday.
On the data front, the benchmark index hovered around the 1.5% mark after figures from the US Department of Commerce on Tuesday indicated that it contracted 0.7% more monthly than expected in May.
Producer prices further fueled price pressures, with the producer price index growing 0.8% and 6.6%, respectively, in May, better than expected. Industrial production in May was mixed, growing 0.8% better than expected but slightly decelerating Growth of 16.37%.
Also on investors’ radars is the meeting between US President Joe Biden and his Russian counterpart Vladimir Putin later that day in Geneva. US Treasury Secretary Janet Yellen will also testify on the federal budget before a House panel a day later.
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