Asian equities fell on Wednesday as investors grew increasingly cautious ahead of the Federal Reserve’s policy decision, while disappointing inflation data from China triggered a deeper sell-off in local markets. S&P 500 futures were flat, signaling subdued global sentiment.
China’s CSI 300 slid 0.9% and the Shanghai Composite dropped 0.7% after consumer prices unexpectedly declined month-on-month and producer prices contracted for the 38th consecutive month. The data highlighted persistent weakness in domestic demand and heightened concerns over China’s growth outlook heading into 2026. Semiconductor stocks also faced pressure following signals that the U.S. may allow Nvidia to sell more advanced AI chips to China.
Japan’s Nikkei 225 fell 0.3%, as elevated producer inflation fueled expectations of a potential rate hike by the Bank of Japan, while geopolitical tensions with China added further strain to risk appetite.
Across the region, markets adopted a defensive tone ahead of the Fed meeting. Australia’s ASX 200 was flat after hawkish comments from the RBA, Singapore’s benchmark index slipped 0.3%, and South Korea’s KOSPI was little changed. In India, the Nifty 50 posted a modest rebound after sharp losses linked to the ongoing crisis at IndiGo Airlines.