Stock markets across Asia traded mixed on Monday as investors await an interest rate cut decision from the US Federal Reserve, scheduled for later this week.In Hong Kong, HSI dropped over 255 points, nearing 1% loss to trade at 25,829.Nikkei, meanwhile, added 44 points to 50,535. Shanghai and Shenzhen also gained 0.8% or 1.74%, respectively. South Korea’s Kospi also traded in green, adding 0.71% to 4,129.Geopolitics remained a drag on sentiment. Rising tensions between two Asian giants, Japan and China also dragged the markets in red. According to officials, Chinese military aircraft locked radar on Japanese fighter jets, an escalation that followed weeks of heightened friction after a remark about Taiwan by Japanese Prime Minister Sanae Takaichi.Japan’s defence minister Shinjiro Koizumi said the government had lodged a formal protest and denounced the incident as “an extremely regrettable” act and “a dangerous” one that “exceeded the scope necessary for safe aircraft operations.”The episode did little to help Japanese shares. Domestic data added to investors’ caution: revised figures released on Monday showed Japan’s economy shrinking at an annual pace of 2.3% during July–September, worse than the previously reported 1.8% contraction. Chinese markets also painted a split picture. Chinese leaders are due to convene a major annual conference to map out economic policy in the coming days.A handful of corporate movers stood out. Ulta Beauty climbed 12.7% after beating expectations on quarterly profit and revenue, while Victoria’s Secret & Co. jumped 18% following a quarterly loss that was milder than analysts predicted. Warner Bros. Discovery rallied 6.3% after Netflix announced plans to buy Warner Bros. for $72 billion in cash and stock once the company completes its separation from Discovery Global. Netflix shares slipped 2.9% and Paramount Skydance — previously viewed as a leading contender to snap up Warner Bros. — dropped 9.8%.Attention now turns squarely to Washington. Traders mostly believe the Federal Reserve will cut interest rates on Wednesday to support the slowing US job market, which would mark the third cut this year. Lower rates tend to lift financial markets and economic activity, but they also risk aggravating inflation, which remains above the Fed’s 2% target.Oil prices were slightly firmer in early Monday trading, with US benchmark crude adding 11 cents to $60.19 per barrel and Brent gaining the same amount to $63.86. In currency dealings, the dollar eased to 155.09 Japanese yen from 155.30 yen late Friday, while the euro strengthened to $1.1651 from $1.1639.
