Asian stocks in retreat as traders eye Fed decision, tech earnings

11/12/2025

Asian markets fell on Wednesday as investors waited for a major policy announcement from the U.S. Federal Reserve. The downturn followed a soft trading session on Wall Street, where concerns about interest rates and the tech sector kept sentiment cautious.

Traders are widely expecting the Fed to issue its third straight interest-rate cut, but the real focus is on what comes next—Jerome Powell’s press conference, the Fed’s official statement, and the updated “dot plot” showing policymakers’ rate expectations for 2026.

The mood has cooled after several strong weeks of trading fueled by weak U.S. jobs data, which supported hopes for more rate cuts. Fresh figures on Tuesday showing higher-than-expected job openings reduced confidence that the Fed will cut rates aggressively next year. Markets now expect two more cuts over the next 12 months, down from three previously forecast.

Analyst Chris Weston of Pepperstone said the data forced traders to “reprice” their expectations for future Fed policy.

Major markets across Asia followed Wall Street lower. Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Wellington, Jakarta, and Manila all posted losses. Taipei saw a slight gain, while Seoul was flat.

Investors are also watching earnings reports from Oracle and Broadcom, hoping for clues about the strength of the tech sector after last month’s AI-driven volatility. There are still concerns about whether massive investments in artificial intelligence will bring returns quickly enough.

Meanwhile, some analysts believe the Fed could become more dovish next year if Kevin Hassett—President Donald Trump’s top economic adviser and the frontrunner to replace Powell in May—takes over. He has indicated he sees room for significantly lower interest rates given current economic conditions.

Market Snapshot (as of 0230 GMT):