Asian markets open mixed ahead of key fed rate decision

September 16, 2026 (MLN): Asian markets opened mixed on Wednesday, with investors awaiting the Federal Reserve’s interest rate decision amid heightened expectations of a rate hike.

Japan’s Nikkei 225 declined 0.34%, while the broader Topix gained 0.7%. South Korea’s Kospi edged up 0.12%, whereas the Kosdaq fell 1.05%. Australia’s S&P/ASX 200 advanced 0.24%. Hong Kong’s Hang Seng Index slipped 0.18%, while China’s CSI 300 declined 0.42%, according to CNBC.

Futures pointed to further gains in some regional markets. Japan’s Nikkei 225 futures stood at 63,555 on the Chicago exchange and 63,490 on the Osaka exchange, compared with the previous close of 63,484.1.

Hang Seng futures traded at 24,762 against the previous close of 24,667.24, while S&P/ASX 200 futures were at 8,691 versus the previous close of 8,672.5.

Markets are closely watching the Fed’s decision, with futures pricing a 92% probability of a 25-basis-point rate hike on Wednesday, according to the CME FedWatch tool. The probability of another quarter-point increase stood at 45% for October and 30% for December. The Fed’s current target range is 3.5%-3.75%.

The decision comes amid calls from the White House to keep borrowing costs unchanged. Council of Economic Advisers Chairman Christopher Phelan said Tuesday that raising rates at this stage would be a mistake, arguing that inflation had been moving in the right direction.

U.S. consumer prices increased 3.4% year-on-year in August, easing from the recent 4.2% peak recorded in May. Monthly CPI rose 0.4%, in line with expectations, while core CPI increased 0.3%, exceeding expectations.

Oil prices added to market concerns after reports that Saudi Arabia cancelled some shipments following drone attacks on a key export pipeline.

West Texas Intermediate crude gained 4.4% to $105.83 per barrel, its highest closing level since May 19, while Brent crude rose 2.9% to $108.75.

U.S. Treasury yields also remained elevated amid expectations of higher prices, with the 10-year yield slightly above 5% and the 30-year yield at 5.369%.

Against the tense geopolitical backdrop, U.S. equities ended lower on Tuesday. The S&P 500 dropped 0.45%, while the Nasdaq Composite declined 0.78%.

Technology stocks, including semiconductor and cloud-service companies, were broadly weaker after discussions among leaders of major large language model companies over the weekend indicated that product release schedules could potentially slow.

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