Ella 
Asian stocks fell on Wednesday as investors awaited the much-anticipated Federal Reserve interest rate meeting.
As of press time, China’s Shanghai Composite Index fell 0.36% to 3113 points; Shenzhen Component Index fell 0.32% to 10093 points; Hong Kong’s Hang Seng Index fell 0.47% to 17912 points; South Korea’s Kospi Index fell 0.29%; Japan’s Nikkei Index fell 0.54%.
In China, the People’s Bank of China (PBoC) kept its benchmark lending rate steady on Wednesday, as expected. The prime rate (LPR) for one-year loans remained at 3.45% and the prime rate for five-year loans remained at 4.20%.
After the People’s Bank of China meeting, a central bank official said the central bank would pay more attention to the yuan’s exchange rate relative to a basket of currencies. The official added that China’s monetary policy has considerable capacity to adapt to unforeseen challenges and changes.
U.S. Treasury Secretary Janet Yellen said on Tuesday that she believed Beijing would likely use the policy space they have to try to avoid a severe economic slowdown, while also citing the impact of China’s economic difficulties on the United States. Spillover Effect.
In Japan, Japan’s top monetary diplomat, Masato Kanda, issued a verbal intervention on Wednesday. Kanda said the Japanese government is dealing with foreign exchange fluctuations with a high sense of urgency.
Additionally, Japan’s August trade balance came in at 930.5 billion yen, below expectations of 659.1 billion yen. At the same time, exports were -0.8% year-on-year, and the previous value was -0.3%, which was better than the expected -1.7%. Imports increased to -17.8% from -13.6% in the same period last year, which was better than the expected -19.4%.
Next, market participants will pay close attention to the Federal Reserve meeting during the North American session on Wednesday. The market’s focus will turn to Friday’s Bank of Japan interest rate decision. The Bank of Japan is mainly expected to maintain its short-term interest rate target of -0.1% and its 10-year bond yield target of around 0%.
