Asia markets edge lower amid fed uncertainty

December 09, 2025 (MLN): Asia markets traded mostly lower on Tuesday as regional investors turned cautious ahead of the U.S. Federal Reserve’s final policy declaration of the year, scheduled for December 10.

The Fed is broadly expected to deliver another 25 basis-point rate cut, which would bring the Federal Funds rate down to a range of 3.5%–3.75%. However, that policymakers are likely to shift toward a more data-driven approach afterward, according to CNBC.

Stephen Kolano, chief investment officer at Integrated Partners, said he expects Fed Chair Jerome Powell to adopt a balanced tone.

He said he would not be surprised if Jerome Powell stated that the Fed has cut rates and now needs to closely watch the data, noting that Powell is likely to avoid a hawkish tone because of the recent softness in the U.S. labor market.

In Japan, the Nikkei 225 edged up 0.21% after a choppy session, supported by tech gains. Disco Corp surged 5.42%, while Konica Minolta rose 4.91%, helping offset broader market softness. The Topix ended the day flat.

South Korea’s Kospi slipped 0.63%, although the Kosdaq managed to inch 0.15% higher. Australia’s S&P/ASX 200 fell 0.24%.
Hong Kong’s Hang Seng Index dropped 0.75% and China’s CSI 300 declined 0.19%.

Meanwhile, U.S. stock futures ticked higher Monday night after President Donald Trump approved Nvidia’s plan to sell its H200 chips to select customers in China.

According to a Truth Social post, the deal allows shipments as long as 25% of the chipmaker’s sales proceeds from China are paid to the U.S. government.

Nvidia shares gained 2.2% in after-hours trading following the announcement.

On Wall Street, the major averages ended lower during the regular session. The S&P 500 slipped 0.35%, the Nasdaq Composite eased 0.14%, and the Dow Jones Industrial Average fell 215.67 points, or 0.45%.

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