Asian markets mixed ahead of fed decision

June 17, 2026 (MLN): Asian markets were poised for a mixed open on Wednesday, with easing geopolitical tensions in the Middle East offering some support even as investors braced for the U.S. Federal Reserve's interest rate decision later in the day.

Japan's Nikkei 225 was on course for a modest pullback after touching a record intraday peak in the previous session, with Chicago futures pointing to 69,160 and Osaka contracts last at 69,110 both below the index's prior close of 69,404.50, according to CNBC.

In contrast, Hong Kong's Hang Seng futures edged up to 24,510, marginally above the last close of 24,493.95. Australian S&P/ASX 200 futures were slightly softer at 8,894, compared with Tuesday's close of 8,917.70.

Tuesday's Asian session had been largely upbeat. The Nikkei 225 and Topix each advanced 0.91%, South Korea's Kospi added 0.42%, and the small-cap Kosdaq climbed 1.49%.

Australia's S&P/ASX 200 rose 0.58%, while Hong Kong's Hang Seng slipped 0.37% and mainland China's CSI 300 ended marginally higher.

The positive tone in regional markets carried over from Wall Street's Monday rally, which was fuelled by news of a potential U.S.-Iran peace agreement.

Pakistani Prime Minister Shehbaz Sharif confirmed that both parties had ceased military operations, with a formal signing ceremony expected in Switzerland on Friday.

Under the preliminary deal, a 60-day ceasefire extension would be put in place alongside a framework for negotiations on Iran's nuclear programme and related issues. U.S. President Donald Trump later indicated his willingness to brief Congress on the agreement ahead of its finalisation.

On Wall Street on Tuesday, the picture was uneven. The Dow Jones Industrial Average surged 328.64 points, or 0.64%, crossing the 52,000 threshold intraday for the first time before closing just below that level.

The S&P 500 and Nasdaq Composite, however, retreated 0.57% and 1.15%, respectively. U.S. index futures edged higher in early Wednesday trade, with S&P 500 futures up 0.26%, Nasdaq 100 futures gaining 0.52%, and Dow futures adding around 41 points.

SpaceX shares were a standout performer, closing up more than 4% in Tuesday's session and extending gains in after-hours trade. The stock has now risen nearly 50% above its IPO price of $135.

The Fed's rate decision dominates the macro calendar for Wednesday, with markets widely anticipating that rates will remain unchanged at 3.5%–3.75%.

The meeting is also the first under new Chairman Kevin Warsh, who is broadly expected to withhold his individual rate projection from the committee's quarterly dot plot update.

Citi Research's head of U.S. equity strategy, Scott Chronert, struck an optimistic tone, saying conditions appear favourable for a strong close to the quarter and a constructive second half.

He noted that a resolution of the Iran conflict could ease oil prices and prompt the Fed to step back, while artificial intelligence infrastructure stocks are expected to lead into the next earnings season.

On the corporate front, CarMax and Jabil are due to release quarterly results before Wednesday's opening bell. Retail sales and pending home sales data for May are also on the economic calendar.

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