Asia-Pacific Markets React to Upcoming Fed Policy Decision

Markets across the Asia-Pacific region experienced a downturn on Tuesday, as investors anxiously awaited the US Federal Reserve's critical interest rate decision. Amidst this, it was revealed that Beijing plans to elevate its 2025 budget deficit target to a record 4% of GDP, aiming to sustain economic growth around the 5% mark.

In Japan, the Nikkei 225 index dipped by 0.13% at 7:19 am CET. Meanwhile, Australia's S&P/ASX 200 index bucked the trend, rising 0.78% by the end of its trading session. South Korea's Kospi index saw a more significant drop, decreasing by 1.32% at 7:20 am CET.

Mainland China's markets also faced declines, with the Shenzhen Composite falling 1.40% at 7:07 am CET, and the Shanghai Composite declining 0.65% at 7:21 am CET. Hong Kong's Hang Seng index lost 0.25% at 7:22 am CET. Meanwhile, the US dollar remained steady against the Japanese yen, trading at ¥154.0935 shortly after.