Asian stocks muted with Fed rate cut in focus by Investing.com

Investing.com– Most Asian stocks were held in a tight range on Wednesday as investors were disappointed by the Federal Reserve meeting where the central bank is expected to cut interest rates widely.

Regional trading volumes were muted by holidays in Hong Kong and South Korea, while Chinese markets moved little after trading resumed from an extended break.

Asian markets took a middling signal from a flat overnight session on Wall Street, as expectations of the Fed prevented any big bets. US stock index futures were mildly positive in Asian trade.

Chinese markets are muted after an extended break, sentiment weak

China and indices were little moved as trade resumed from a two-day market holiday.

Sentiment toward China remained subdued after several weak economic readings released over the past few days, showing persistent headwinds for the country's biggest growth drivers.

China's benchmark indices are trading at more than seven-month lows this year, lagging widely behind their regional peers.

But investors are hoping that recent signs of a weaker economy will prompt more stimulus measures from Beijing.

Japanese stocks rise, focus on BOJ

Japan's index was the best performer in Asia, rising 0.7%, while the index added 0.2%.

Local stocks recovered some of the losses logged in the previous session on a stronger yen, as investors looked ahead to the end of the week.

The BOJ is expected to keep interest rates unchanged, but is likely to strike a hawkish tone and reiterate plans to raise interest rates further in the coming months.

Japanese data is also out on Friday

Among the major movers, Nippon Steel Corp. ( TYO: ) rose 2% after Bloomberg reported that the firm won an extension on a security review of its takeover bid for United States Steel Corp. (NYSE: ) .

Asian stocks tread water with Fed rate cut on tap

Broader Asian markets moved little as expected, which would be later in the day, barring any major trade.

Australia was flat, while India index futures pointed to a mildly positive opening, with the index sitting at a record high. Indians fell slightly short of expectations in August, data showed on Tuesday.

The Fed is widely expected to cut interest rates, with traders divided on expectations for a cut of 25 or 50 basis points. But bets on a 50 bps cut were seen rising in the recent session.

The Fed is also expected to signal the start of an easing cycle, which bodes well for risk-driven stock markets.