Asian stocks slip as Fed decision nears and tech shares retreat
Why it matters: Traders are split between rate cuts and hikes, while lower oil prices have eased some inflation fears.
Asian stocks opened lower on Wednesday as investors pulled back from technology shares and waited for the first US Federal Reserve policy decision under Chair Kevin Warsh. MSCI’s regional equity gauge slipped 0.1% after a three-day rally, while South Korea’s Kospi lost 0.6%. The move followed a weaker Wall Street session, with the S&P 500 down 0.6% and the Nasdaq 100 falling nearly 2% as semiconductor stocks dropped. Brent crude ticked higher in early trading after a roughly 5% slide in the previous session that pushed it below $79 a barrel, easing worries that energy costs could rekindle inflation. Investors are now focused less on an immediate move and more on how Warsh signals the Fed’s path as forecasts range from cuts to multiple hikes later this year.