HSI Flat, Asian Investors Look To Key Fed Meeting

Hong Kong shares ended the morning barely moved on Wednesday as traders await a key Federal Reserve policy decision, with bargain-buying offset by concerns about long-running protests in the city.

The Hang Seng Index inched up just over seven points, to 26,797 by the break.

On the mainland, the Shanghai Composite Index gained 0.3 percent, to 2,987 while the Shenzhen Composite Index was flat, at 1,651.

Seoul added 0.4 percent and Taipei rose 0.3 percent but Sydney slipped 0.2 percent and Singapore fell 0.1 percent, while Wellington and Manila were also down.

The focus is now on the Fed, which is expected to cut interest rates while its post-meeting statement latwer in the day will be closely followed for clues about future plans.

Markets bet the Fed will move to a softer monetary policy to offset a slowdown in most economies exacerbated by the China-US trade war.

"A rate cut of 25 basis points is universally regarded as a done deal by global markets," said Oanda senior market analyst Jeffrey Halley.

"What will be closely watched is the press conference 30 minutes later, where we will gain more clarity as to whether the Fed has moved to an explicit easing bias.

"The likelihood of a shift from neutral to easing will be high as the [policy board] will not be able to ignore the storm cloud around the rest of the world that must eventually start raining on the United States."

Oxford Economics estimates the Fed will cut three more times this year, which would erase all its 2018 rate hikes. (AFP)

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