Asian stock markets mostly declined on Tuesday ahead of the US Federal Reserve's interest rate decision. Hong Kong's Hang Seng Index fell 1.5%, and Singapore's Straits Times Index dropped 0.8%. Investors remained cautious about the US interest rate trajectory and economic outlook.
Major Asian indices were generally under pressure on Tuesday as markets felt uneasy ahead of the US Federal Reserve's meeting this week. Investors are assessing whether the Fed will signal the timing of future rate cuts. Hong Kong's Hang Seng Index dropped 1.5%, weighed down by technology and property sectors. Singapore's Straits Times Index fell 0.8%, and South Korea's KOSPI also declined by 0.7%. This regional cautiousness translated into soft performance for the KLCI. Analysts noted that if the Fed's rhetoric is more hawkish than expected, Asian markets might face greater selling pressure, particularly concerning emerging market currencies. Local investors are awaiting the outcome of the Fed meeting to determine the short-term market direction.
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