- Investors cut their positions to limit risk ahead of the Federal Reserve's rate announcement on Wednesday, with Chinese share markets eating into Tuesday's gains.
- Hong Kong markets fell, with technology stocks down more than 1%. Japan and South Korea's equities were also lower. SK Hynix erased an earlier gain after Apple memory chip supplier announced higher-than-expected sales. The stock is currently on track for its sixth consecutive day of losses.
- Australian stocks rose when inflation came in line with expectations. The Australian dollar declined alongside government bond yields across tenors.
- While Chinese assets rose following the Politburo meeting on Monday, investors are still waiting for Beijing to provide more meaningful economic help amid concerns that debt and demographic restrictions will weigh on development.
- In a reminder of the opacity of government activities, China fired its foreign minister after only seven months in office, after he vanished from public view in June. It also appointed Pan Gongsheng as governor of the central bank.
- Nevertheless, the S&P 500 closed Tuesday at its highest level since April 2022, the Nasdaq 100 excelled, and the Dow Jones Industrial Average gained for the 12th time in six years, as the Conference Board's US consumer confidence index rose to a 2-yr high. Big tech led equity gains, with traders waiting for earnings season to see if the hype surrounding artificial intelligence justifies this year's market increase.
