ASIA-PAC MARKET WRAP: Asia stocks declined after post mid-term rally stalled on Wall St and as Fed remains on track for December hike

Asia equity markets traded lower following a lacklustre lead from Wall St where the mid-term stock rally stalled as focus shifted to the FOMC, which maintained rates as expected and provided little to derail expectations for a 4th hike this year. ASX 200 (-0.1%) and Nikkei 225 (-1.0%) were lower with energy stocks pressured after a continued slump in oil prices and as soft earnings results also clouded over Tokyo sentiment. Hang Seng (-2.5%) and Shanghai Comp. (-1.1%) were the worst hit in the region as tech and energy stocks lagged, while continued PBoC liquidity inaction and inline inflation data proved to be inconclusive for sentiment. Finally, 10yr JGBs were flat with prices uneventful as the pressure from the recent losses in T-notes was counterbalanced by the risk averse tone and BoJ’s presence in the market for JPY 980bln of JGBs across the curve.