TOKYO -- Global stocks mostly fell in a quiet session on Wednesday ahead of a speech by US Federal Reserve Chair Jerome Powell that could point the way for future interest rate policy.
France's CAC 40 fell 0.2% to 6,971.37 and Germany's DAX lost 0.3% to 15,108.60. Britain's FTSE 100 rose less than 0.1% to 7,413.84. The future of the S.&The P 500 was down less than 0.1%, while the Dow Industrial was unchanged.
Powell is scheduled to deliver a speech at a conference in Washington, DC, on Wednesday morning. Last week, investors embraced comments he made to suggest the Fed might finally be done raising interest rates this time around. Inflation has been moderating since peaking in the summer of 2022, and a recent rise in Treasury yields may be acting as a substitute for further rate hikes.
Since then, Federal Reserve officials have indicated that further increases could still be necessary if inflation does not decline further. The Federal Reserve's main interest rate is now at its highest level since 2001, above 5.25%. The 10-year Treasury bond has fallen from more than 5% to 4.60% early Wednesday.
Investors in Asia are also focusing their attention on the prospects for improving relations between China and the United States beginning with meetings next week on the sidelines of a Pacific Rim summit.
The Asia-Pacific Economic Cooperation Forum meetings in San Francisco offer an opportunity for top leaders from the United States and China to repair troubled trade and political ties.
Presidents Joe Biden and Xi Jinping will meet then, and White House officials hope to make some modest announcements as part of the face-to-face, but fundamental differences in the relationship will remain unchanged.
U.S. Treasury Secretary Janet Yellen will meet with Chinese Vice Premier He Lifeng in San Francisco on Thursday and Friday before finance ministers from APEC member countries officially kick off the summit on Saturday.
Hong Kong's Hang Seng lost 0.5% on Wednesday to 17,588.46, while the Shanghai Composite fell 0.2% to 3,052.37. Pessimism over China's worse-than-expected export data offset any positive momentum from an upgrade to its growth forecast by the International Monetary Fund. It raised its 2023 GDP growth forecast to 5.4% from 5%, but predicted growth would slow next year.
Japan's benchmark Nikkei 225 index fell 0.3% to finish at 32,166.48. South Korea's Kospi lost 0.9% to 2,421.62. S from Australia&The P/ASX 200 gained 0.3% to 6,995.40.
Moody's Investors Service affirmed the Government of Japan's long-term senior unsecured local and foreign currency ratings, as well as the A1 senior unsecured local and foreign currency ratings. The outlook remained stable.
"Today's rating action reflects Moody's expectation that Japan's ability to support its massive debt burden remains intact, supported by the retention of its formidable credit strengths, including strong domestic liquidity driven by continued savings growth. from the private sector," he said.
Japan's main concerns were its "structural weaknesses," such as its aging population, according to Moody's.
The weak trade data highlights persistent external challenges to Asian economic growth, Stephen Innes, managing partner at SPI Asset Management, said in a commentary.
"Despite the strong US economic momentum seen in the third quarter, cyclical stocks are struggling to attract sustained interest from investors, who anticipate an eventual slowdown in economic growth," he said.
In other trading, benchmark U.S. crude lost 20 cents to $77.17 a barrel in electronic trading on the New York Mercantile Exchange. It fell $3.45 to close at $77.37 on Tuesday, returning to where it was in July, before the latest war between Israel and Hamas raised concerns about potential supply disruptions.
Brent crude, the international standard, lost 5 cents to $81.56 a barrel.
In currency trading, the US dollar rose to 150.77 Japanese yen from 150.37 yen. The euro cost $1.0662, down from $1.0702.
