Asian markets retreat ahead of Fed announcement

Asian markets fell in early trading Wednesday, following new doubts about a U.S.-China trade deal and ahead of an expected interest-rate cut by the U.S. Federal Reserve.

While U.S. officials, including President Donald Trump, in recent days had touted progress in trade talks, Reuters reported Tuesday that a “phase one” deal might not be ready to be signed at the Asia-Pacific Economic Cooperation summit in Chile next month. “Our goal is to sign it in Chile. But sometimes texts aren’t ready,” a U.S. official told Reuters.

Separately, China accused the U.S. of “bullying” over a proposed ban on Chinese telecom equipment in U.S. networks, and China’s ambassador to the United Nations suggested that U.S. criticism over human rights could impact trade talks.

Meanwhile, investors are awaiting the conclusion of the Fed’s two-day meeting, with many expecting the third rate cut of the year but uncertain if the central bank will signal further monetary easing in the future.

Japan’s Nikkei

NIK, -0.52%

fell 0.4% and Hong Kong’s Hang Seng Index

HSI, -0.27%

slipped 0.3%. The Shanghai Composite

SHCOMP, -0.44%

edged down 0.4 while the Shenzhen Composite

399106, -0.91%

slid 0.8%. South Korea’s Kospi

180721, -0.69%

declined 0.4%, while benchmark indexes in Taiwan

Y9999, +0.21%