Investing.com - Asian stocks traded mostly lower on Wednesday in Asia after U.S. Federal Reserve chairman Jerome Powell said the central bank is “insulated” from political pressure, curbing rate-cut enthusiasm.
China’s Shanghai Composite and the Shenzhen Component both dropped 0.1% by 10:30 PM ET (02:30 GMT). Hong Kong’s Hang Seng Index inched up 0.2%.
Japan’s Nikkei declined 0.3%. South Korea’s KOSPI fell 0.1%.
Down under, Australia’s ASX 200 also fell 0.1%.
Traders continue to focus on developments on the Sino-U.S. trade front, as the upcoming G-20 summit draws near.
The U.S. is willing to delay the next round of tariffs on an additional $300 billion of Chinese goods, CNBC reported citing people familiar with the matter. The decision might be announced next week after the G-20 summit is concluded, the sources said, adding that no trade deal is expected when U.S. President Donald Trump and Chinese leader Xi Jinping meet at the summit in Japan this weekend.
Overnight, U.S. stocks closed lower after Powell said the Fed is looking into current economic situations and assessing whether uncertainties on global growth and ongoing Sino-U.S. trade war call for lower rates, but noted the central bank will adopt a wait-and-see approach.
“Since the beginning of the year, we had been taking a patient stance toward assessing the need for any policy change,” he said. “We now state that the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2% objective.”
“The Fed is insulated from short-term political pressures - what is often referred to as our ‘independence,’” Powell added.
In the past, Trump has openly pressured Powell and his colleagues to loosen policy, saying lower rates would give an added boost to an economy.