Most Asian stocks fell and U.S. futures fluctuated Wednesday as concerns about indebted developer China Evergrande Group lingered after an update on a bond interest payment. Treasuries were steady before the Federal Reserve policy decision. MSCI Inc.’s Asia-Pacific index declined for a third day.
Equities were lower in China but avoided a bigger selloff after trading resumed following a holiday during which global markets where whipsawed by fears of contagion radiating from crisis-hit Evergrande.
The Chinese central bank boosted a cash injection, shoring up sentiment. S&P 500 and Nasdaq 100 contracts were modestly in the green after swinging between gains and losses. European futures also advanced. The yen weakened and commodity-linked currencies such as the Australian dollar pushed higher.
The U.S. dollar ticked up. Elsewhere, Bitcoin slid below $40,000 for the first time since early August before rebounding. Oil advanced for a second day. The Fed’s potential timeline for tapering stimulus and any shifts in expectations for interest-rate increases will be key for investors.
The Fed meeting comes after a period of market volatility stoked by Evergrande’s woes. China’s wider property-sector curbs are also feeding into concerns about a slowdown in the economic recovery from the pandemic.
