Federal Reserve Prepares for Key Rate Decision Amid Market Volatility

Asia-Pacific markets were mostly lower on Tuesday following losses on Wall Street, with investors cautious ahead of the U.S. Federal Reserve's decision on December 10. The central bank is widely expected to cut rates by another 25 basis points, bringing the Federal Funds rate to a range of 3.5% to 3.75%.

Experts suggest that after this cut, the Fed may adopt a more data-dependent approach. Stephen Kolano, chief investment officer at Integrated Partners, indicated that Jerome Powell might emphasize the need to closely monitor economic data, particularly due to observed softness in the labor market.

In market movements, Japan's Nikkei 225 closed up 0.14% at 50,655.1, with tech gains from companies like Konica Minolta and Disco Corp. South Korea's Kospi declined by 0.27% to 4,143.55, while the small-cap Kosdaq rose 0.38% to 931.35.

Hong Kong's Hang Seng index fell by 1.29% to 25,434.23, contributing to losses in the Asia-Pacific region. Mainland China's CSI 300 index dropped 0.51%, ending at 4,598.22. In India, the Nifty 50 decreased by 0.25%, and the BSE Sensex was down 0.27%.

Australia's S&P/ASX 200 saw a decline of 0.45% to 8,585.9, following the Reserve Bank of Australia's decision to hold its policy rate at 3.6%, citing potential upside risks to inflation and the need for further assessment of inflationary pressures.