Stock market today: Asian stocks are mostly higher ahead of Federal Reserve’s meeting

HONG KONG — Asian shares were mostly higher on Wednesday, ahead of this year’s Federal Reserve’s final interest rate decision.

U.S. futures rose while oil prices were mixed.

Japan’s benchmark Nikkei 225 fell 0.2% to 39,281.06 in morning trading after Japanese exports grew 3.8% year-on-year in November. Meanwhile, imports fell 3.8%, according to Finance Ministry data.

Trade-in Nissan Motor Corp shares were temporarily suspended after surging 22% as the automaker considered a possible merger with Honda Motor Co, according to reports. The latter’s shares lost as much as 3%.

The companies issued a statement saying they were discussing closer cooperation but had not yet decided anything. Nissan, Honda and Nissan alliance member Mitsubishi Motors Corp. agreed in August to share electric vehicle components such as batteries and jointly research autonomous driving software to better adapt to dramatic changes in the auto industry.

The yen traded lower ahead of a Bank of Japan meeting, where the central bank is expected to leave its benchmark interest rate unchanged when it announces a policy update on Friday.

Hong Kong’s Hang Seng rose 0.6% to 19,815.30 and the Shanghai Composite index gained 0.7% to 3,385.64.

In South Korea, the Kospi rose 1% to 2,481.87. The Australian S&P/ASX 200 fell 0.1% to 8,304.00.

On Tuesday the S&The P500 fell 0.4% to 6,050.61, although it is still close to its all-time high hit earlier this month. The Dow Jones Industrial Average fell 0.6% to 43,449.90, and the Nasdaq composite gave back 0.3% from the record from the day before to 20,109.06.

A survey of global fund managers found that many Bank of America strategists ended up investing in US stocks, drawing down their cash reserves. The survey found that fund managers are holding a remarkably small percentage of their total portfolios in cash, similar to 2002 and 2011, which preceded tougher times for riskier investments.

The S&The P500 is on track for one of the best years since the millennium, up almost 27%, as the US economy has remained remarkably resilient. President-elect Donald Trump The policy will boost growth but not inflation too much, and the Federal Reserve has started to make things easier by cutting interest rates from 20-year highs.

The Fed is widely expected to do so announces the third reduction of the year to the key interest rate on Wednesday, and officials will also unveil projections for where they see rates going in the coming years.

However, expectations for upcoming cuts are declining inflation It appears that rates could remain stubbornly above the Fed’s 2% target after a sharp slowdown from the peak above 9%.

This emerged from a report on Tuesday sales at American retailers increased by more last month than economists expected. That could be an indication of an economy that doesn’t need much more help from lower interest rates. While lower interest rates can spell trouble for the economy, they can also give more fuel to inflation.

“The Fed is still on track to cut rates (Wednesday), but stronger economic data could make it more likely they will pause in January,” said Chris Larkin, managing director, trading and investors, at E-Trade of Morgan. Stanley.

Government bond yields remained relatively stable after the report. The yield on ten-year government bonds remained at 4.40%, where it was late on Monday. The two-year interest rate, which is more in line with expectations for the Fed, fell from 4.25% to 4.24%.

Bitcoin set a record above $108,000 on Tuesday before retreating towards $106,500, according to CoinDesk.com. It has catapulted from around $44,000 at the start of the year, thanks to a recent wave of enthusiasm that Trump will create a system that is more favorable for digital currencies.

In other trades, U.S. crude rose 7 cents to $69.72 a barrel on Wednesday. Brent crude, the international standard, added 6 cents to $73.25 a barrel.

The US dollar fell from 153.50 yen to 153.47 Japanese yen. The euro traded at $1.0505, up from $1.0491.

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AP Business Writer Stan Choe contributed.