- Shanghai stocks gain after stimulus briefing as Asian markets rally
- South Korea military says 'fully ready' as drone flights anger North
- Pakistan 'vigilantes' behind rise in online blasphemy cases
- Nearly 90, but opera legend Kabaivanska is still calling tune
- Smith experiment as Test opener over, Green out of India series
- With inflation down, ECB eyes faster tempo of rate cuts
- Is life possible on a Jupiter moon? NASA goes to investigate
- Dodgers crush Mets 9-0 in MLB playoff series opener
- South Korea military says 'fully ready' as drone tensions soar
- Cummins back, Marsh and Head out of Pakistan ODI series
- Shanghai stocks swing after stimulus briefing as most of Asia rises
- New Zealand's Latham promises 'no fear' as he takes charge for India Tests
- Kyrgios vows to 'shut up' doubters with December comeback
- Public hearings start into death of Brit by Russian nerve agent
- Ex-Stasi officer faces verdict over 1974 Berlin border killing
- Role of government, poverty research tipped for economics Nobel
- 'Stolen satire' feeds US election misinformation
- Rookie McCarty captures first PGA Tour title in Black Desert Championship
- Australia all-rounder Green ruled out of India Test series
- Seeing double in Nigeria's 'twins capital of the world'
- UK FM to attend EU foreign affairs talks for first time in 2 years
- Carter, Billups among 13 new Basketball Hall of Fame inductees
- Ravens rip Commanders as Lions lose NFL sacks leader in win
- Hezbollah drone strike kills four, wounds dozens at Israeli base
- China says launches military drills around Taiwan
- Stewart leads Liberty past Lynx to level WNBA Finals
- England return to winning ways in Nations League, Austria thrash Norway
- UN chief says attacks on UNIFIL 'may constitute a war crime'
- Ravens outlast Commanders while Bucs batter Saints in NFL
- Dozens hurt in Israel as Hezbollah claims drone strike
- England deserve 'world class' coach: Carsley
- Burkina Faso win to become first qualifiers for 2025 AFCON
- AC Milan's Pulisic among five out for USA match in Mexico
- France's Amandine Henry retires from international football
- Centre-left set to win pro-Ukraine Lithuania's vote
- India's World Cup hopes in Pakistan hands after Australia defeat
- Zelensky says NKorea sending troops to Russian army
- England beat Finland to get back on track
- King and Lewis propel West Indies to T20 triumph over Sri Lanka
- Pre-Halloween 'Terrifier' lands atop North America box office
- 'I still plan to compete and play next season,' says Djokovic
- Harris, Trump seek advantage in knife-edge election battle
- Chepngetich shatters women's marathon world record in Chicago
- Kamindu and Asalanka power Sri Lanka to 179 against West Indies
- Chepngetich shatters women's marathon world record as Korir wins in Chicago
- Spain send injured Yamal home 'to prioritise player's health'
- In milestone, SpaceX 'catches' megarocket booster after test flight
- Iraq walks fine line with pro-Iran factions to avoid war
- Race four abandoned after New Zealand breeze into 3-0 lead in America's Cup
- West Indies win toss, put Sri Lanka in to bat in first T20
Asian markets enjoy post-rout calm as traders await Fed hike
Asian equities were mixed Wednesday with investors nervously awaiting a Federal Reserve interest rate decision that has taken on greater significance since a forecast-busting inflation report sent shockwaves through world markets.
Trading floors saw a sea of red at the start of the week after data showed US consumer prices soared at their fastest pace in four decades last month, confounding hopes they were stabilising and putting pressure on officials to act.
The news ramped up bets that the central bank would hike interest rates at a steeper and faster pace than expected as it struggles to retain credibility.
Before Friday's data, the Fed had been tipped to lift borrowing costs by half a point when its policy meeting ends Wednesday but investors are now widely anticipating a three-quarter point increase, with some even suggesting one percentage point.
The moves fuelled worries that the tighter monetary conditions will deal a blow to the US economy and potentially send it into recession next year.
Still, many observers say acting now is the only option available to policymakers if they want to rein in prices and prevent stagflation.
"The sooner they are going to be clear about how quickly they are going to raise rates and what is an acceptable rate of inflation for them, the sooner markets will calm down," Wincrest Capital's Barbara Ann Bernard told Bloomberg Television.
And StoneX Financial's Matt Simpson added: "A bullish outcome for risk-appetite is the well-telegraphed 75-basis-point hike, conviction from the Fed that they’ll manage a soft landing, alongside a downwardly revised CPI forecast for good measure".
But he warned that a half-point increase "could inadvertently weigh on sentiment as markets are concerned the Fed aren’t taking inflation seriously enough".
While most of Wall Street and Europe ended down, they saw less turbulent action than Friday and Monday.
Asia was mixed, with some markets enjoying a bargain-buying.
Hong Kong, Shanghai, Singapore, Wellington, Taipei and Jakarta were all in positive territory, while Tokyo, Sydney, Seoul and Manila slipped.
While there is a little calm ahead of the Fed announcement, commentators warn that uncertainty will continue to course through trading floors for some time.
Strategist Louis Navellier said markets could go one of two ways after the meeting.
"The big unknown is will the market have a relief rally thinking that inflation is finally being seriously addressed and will therefore be tamed sooner than feared?
"Or will the move create new sellers from fears that the Fed is panicking and may hasten a recession by overshooting as it chases inflation?
"Either way, rates will be rising in an attempt to slow demand in order to slow inflation and further volatility is almost guaranteed."
In company news, the management agency of K-pop supergroup BTS plunged by a quarter in Seoul after the band announced they were taking an indefinite break.
The seven members, who have generated billions of dollars for South Korea's economy, made the shock announcement on Tuesday.
On Wednesday morning the band's label HYBE collapsed about 27 percent, wiping $1.6 billion off its market valuation.
- Key figures at around 0230 GMT -
Tokyo - Nikkei 225: DOWN 0.7 percent at 26,435.01 (break)
Hong Kong - Hang Seng Index: UP 1.0 percent at 21,281.78
Shanghai - Composite: UP 1.0 percent at 3,320.70
Euro/dollar: UP at $1.0445 from $1.0420 late Tuesday
Pound/dollar: UP at $1.2040 from $1.1993
Dollar/yen: DOWN at 135.17 yen from 135.33 yen
Euro/pound: DOWN at 86.77 pence from 86.84 pence
Brent North Sea crude: UP 0.3 percent at $121.47 per barrel
West Texas Intermediate: UP 0.3 percent at $119.24 per barrel
New York - Dow: DOWN 0.5 percent at 30,364.83 (close)
London - FTSE 100: DOWN 0.3 percent at 7,187.46 (close)
A.Rodriguezv--AMWN