Japan reported that it logged a trade surplus in February, with exports rising more than 11% as manufacturers rushed to beat rising tariffs imposed by U.S. President Donald Trump.
The Japanese central bank opted to keep its benchmark rate unchanged, as expected. The Fed also is expected to hold rates steady.
Japan's benchmark Nikkei 225 edged down 0.3% to finish at 37,751.88 after the central bank decided to keep the benchmark interest rate unchanged at 0.5%. The U.S. Federal Reserve is also expected to keep rates steady.
Bank of Japan Gov. Kazuo Ueda reiterated that the Japanese economy is recovering moderately, though risks remain. He declined comment on Trump's policies. Ueda said fluctuations in exchange rates and consumer prices required monitoring.
In currency trading, the U.S. dollar rose to 149.66 Japanese yen from 149.28 yen. The euro cost $1.0904, down from $1.0944.
Hong Kong's Hang Seng added 0.1% to 24,771.14, while the Shanghai Composite declined 0.1% to 3,426.43.
Australia’s S&P/ASX 200 declined 0.4% to 7,828.30. South Korea’s Kospi gained 0.6% to 2,628.62.
Much attention will focus Wednesday on forecasts the Fed will publish after its meeting, showing the outlook for interest rates, inflation and the economy. For now, traders on Wall Street are largely expecting the Fed to deliver two or three cuts to rates by the end of 2025.
Uncertainty is widespread among global markets about what President Donald Trump's trade war will do not only to the American economy but also to other economies around the world. Trump's rat -a- tat announcements on tariffs and other policies have created worries that U.S. households and businesses could pull back on their spending, which would hurt the economy.
That complicates matters for the Federal Reserve, which is beginning its latest meeting on interest-rate policy and will make its announcement on Wednesday.
Virtually everyone expects the Fed to stand pat. Cutting its main interest rate would make it easier for U.S. businesses and households to borrow, helping to boost the economy. But lower interest rates can also push inflation upward, and U.S. consumers shell-shocked by high prices have already begun bracing for even higher inflation because of tariffs.
In energy trading, benchmark U.S. crude fell 51 cents to $66.39 a barrel. Brent crude, the international standard, lost 46 cents to $70.10 a barrel.
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP
Credit: AP