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Asia-Pacific Markets React to Wall Street Declines
Asia-Pacific markets opened mixed Wednesday as investors monitored developments on Wall Street and awaited the U.S. Federal Reserve’s two-day policy meeting, where an interest rate cut is widely anticipated.

Japan’s benchmark Nikkei 225 traded flat amid choppy activity, while the broader Topix index fell 0.4%. Government data showed Japanese exports dipped 0.1% year on year in August, below the 1.9% decline expected by economists, and slightly better than July’s 2.6% contraction. Despite the softer-than-expected drop, Japan’s exports continue to face headwinds from lingering U.S. tariffs and slowed demand following front-loaded shipments earlier in the year.

Australia’s ASX/S&P 200 index retreated 0.63%, while South Korea’s Kospi lost 0.75% and the small-cap Kosdaq fell 0.38%.

Strong Gains in Hong Kong and Mainland China
In contrast, Hong Kong equities surged, with the Hang Seng Index rising 1.35% and the Hang Seng Tech Index jumping 3.43%. Shares of Baidu climbed as much as 14% following the completion of a 4.4 billion yuan ($618 million) offshore bond offering maturing in 2029. Baidu also announced a collaboration with China Merchants Group to advance AI technology, boosting investor sentiment.

Mainland China’s CSI 300 added 0.6%, reflecting steady domestic optimism despite mixed global signals.

India and Singapore Market Updates
India’s benchmark indices also showed modest gains, with the Nifty 50 up 0.33% and the Sensex rising 0.14% at the open.

Meanwhile, Singapore reported an 11.3% year-on-year decline in non-oil domestic exports in August, a sharp reversal from the 1% growth economists had forecast. Key sectors such as specialized machinery, food preparations, and petrochemicals contributed to the slowdown, following a revised 4.7% contraction in July. As one of the world’s most trade-dependent economies, Singapore’s export trends are closely watched as a gauge of global demand.

U.S. Market Context and Fed Outlook
U.S. stocks ended lower overnight as investors booked profits ahead of the Fed’s anticipated rate cut, which would mark the first reduction since December. The S&P 500 closed 0.13% lower at 6,606.76 after touching fresh highs, while the Nasdaq Composite slipped 0.07% to 22,333.96. The Dow Jones Industrial Average fell 125.55 points, or 0.27%, closing at 45,757.90.

U.S. equity futures were largely flat in early Asian trading, reflecting cautious investor sentiment as markets await the Fed’s policy announcement. Analysts expect the central bank’s decision to influence global risk appetite and capital flows, particularly in interest-sensitive sectors across Asia.

Looking Ahead
Investors in the region remain cautious amid uneven economic signals, ongoing trade tensions, and monetary policy shifts. While some markets, like Hong Kong and mainland China, show resilience driven by corporate announcements and domestic stimulus, others such as Japan and South Korea face persistent export and demand challenges. Market watchers will closely track the Fed’s moves for clues on interest rates, liquidity, and the trajectory of global equities in the coming months.