Asian shares are mixed before Fed rate decision

BANGKOK (AP) — Shares in Asian markets were mixed on Tuesday, with declines in Hong Kong and Shanghai, ahead of the Federal Reserve’s decision this week on interest rates. U.S. futures and oil prices inched higher. Shares in China Evergrande Group, the world’s most heavily indebted real estate company with more than $300 billion in liabilities, remained suspended from trading after a Hong Kong court ordered the company to be liquidated due to insolvency.

Shares in China Evergrande New Energy Vehicle Group gained 4.8% as they resumed trading, while Evergrande Property Services fell 1.3%. Property companies led the decline in Hong Kong, where the benchmark Hang Seng index sank 2% to 15,764.13. Technology companies also retreated, with food delivery company Meituan down 2.6% and e-commerce giant Alibaba falling 1.8%. The Shanghai Composite index gave up 0.6% to 2,865.60.

Chinese regulators have been taking steps to support the markets, which have been among the worst performing so far this year due to concerns about the troubled property industry and slowing growth in the world’s second-largest economy. “Skepticism persists regarding the equity plunge protection plan,” Stephen Innes of SPI Asset Management said. “While measures akin to a band-aid on a broken leg may temporarily boost stock prices, they do little to stabilize earnings or foster growth.” In other parts of Asia, Tokyo’s Nikkei 225 index rose 0.4% to 36,175.98 and the Kospi in South Korea edged 0.1% higher, to 2,503.00. Australia’s S&P/ASX 200 picked up 0.2% to 7,591.00. Bangkok’s SET was nearly unchanged.

On Monday, U.S. stocks gained as they kicked off a week where Wall Street’s most influential stocks may show whether the huge expectations built up for them are justified. The S&P 500 gained 0.8% to set another record at 4,927.93. The Dow Jones Industrial Average climbed 0.6%, to 38,333.45, and the Nasdaq composite jumped 1.1% to 15,628.04. Big Tech stocks will feature heavily in earnings reports this week, including Apple, Alphabet, Amazon, Meta Platforms, and Microsoft.

The Federal Reserve will make its next decision on interest rates on Wednesday. Traders expect it to stand pat but hope it may cut rates at its next meeting in March, marking the first downward move since the Fed began raising interest rates two years ago to control inflation. On Friday, the U.S. government will release the latest monthly update on the job market. Economists expect it to show continued growth in hiring, but at a slower pace, which would align with the Fed’s aims to avoid upward pressure on inflation.

In other trading Tuesday, U.S. benchmark crude oil was up 26 cents at $77.04 per barrel in electronic trading on the New York Mercantile Exchange. A barrel of Brent crude, the international standard, gained 25 cents to $82.08 per barrel. The U.S. dollar fell to 147.35 yen from 147.50 yen, and the euro slipped to $1.0833 from $1.0835.___AP Business Writer Stan Choe contributed.