HSI Down, Asian Markets Mixed Ahead Of Fed Meeting

Hong Kong stocks ended the morning lower on Friday, as traders awaited the release of key US jobs data that could guide the Federal Reserve's next decision on interest rates.

The Hang Seng index shed 0.5 percent, to 25,969 by the lunch break.

The mainland markets are closed for a holiday.

Asian markets fluctuated as investors tentatively await the release of key US jobs data later in the day.

Sydney edged up 0.1 percent, Seoul and Taipei both added 0.3 percent and Wellington put on 0.8 percent.

Manila and Jakarta also edged up but Singapore slipped 0.3 percent and Tokyo went into the break 0.1 percent lower.

The market is hoping the Federal Reserve will cut interest rates for a third time this year at its October meeting the crucial services sector came in at its lowest for three years.

But Oanda senior market analyst Jeffrey Halley added that while markets "pricing in an almost 100 percent certainty" for a rate cut, the bank could hold its horses for now.

"With trade talks between the US and China restarting next week in Washington it would make complete sense [for the Fed] to see if any progress is made," he said in a note.

The prospect of lower rates weighed on the dollar, which was down against most higher-yielding, riskier currencies such as the South Korean won and Indonesian rupiah.

It was also off against the pound, despite uncertainty about the outlook for Britain's economy after Prime Minister Boris Johnson's latest Brexit plan failed to win over the EU, just weeks before the October 31 Brexit day. (AFP)

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