Stock market today: Asia shares rise moderately ahead of closely watched Federal Reserve meeting

TOKYO (AP) — Asian shares were mostly higher Wednesday as markets focused on prospects for the U.S. Federal Reserve’s first cut to interest rates in more than four years.

The Bank of Japan and the Bank of England are also holding monetary policy meetings later this week. But neither central bank is expected to move on rates, although the language of what the officials say could be an indicator of later moves and still influence markets.

Japan’s Nikkei 225 gained 0.8% in morning trading to 36,482.21. Australia’s S&P/ASX 200 stood virtually unchanged at 8,139.30. South Korea’s Kospi added 0.1% to 8,139.30. Trading was closed in Hong Kong for a national holiday. The Shanghai Composite index edged up nearly 0.2% to 2,709.06.

The Fed’s announcement is scheduled for Wednesday, with the overwhelming expectation on Wall Street for a cut to the federal funds rate. The rate has been in a range of 5.25% to 5.50% for over a year.

Lower rates would help boost the slowing economy, as it has become increasingly more expensive to borrow money for everything from houses to cars to corporate debt.

The Fed has been keeping its main interest rate at a two-decade high in hopes of grinding down on the economy enough to stifle high inflation.

On Wall Street, the S&P 500 edged up less than 0.1% to 5,634.58. It remains 0.6% below its all-time closing high set in July, and it briefly rose above that mark during the morning.

The Dow Jones Industrial Average slipped less than 0.1% to 41,606.18 from its own record set the day before, while the Nasdaq composite edged up by 35.93, or 0.2%, to 17,628.06.

Intel helped drive the market with a gain of 2.7% following a series of announcements, including an expansion of its partnership with Amazon Web Services to produce custom chips. Intel also detailed plans to build its foundry business.

But some reports released Tuesday on the U.S. economy were better than expected, including one on U.S. consumer spending. That’s likely a sign the American economy will not nose-dive into a recession.

A separate report said U.S. industrial production returned to growth in August and was stronger than economists expected.

In the bond market, the 10-year Treasury yield rose to 3.64% from 3.62% late Monday. The two-year yield, which more closely tracks expectations for the Fed’s actions, rose to 3.59% from 3.56%.

In energy dealings, benchmark U.S. crude declined 20 cents to $70.99 a barrel. Brent crude, the international standard, fell 18 cents to $73.52 a barrel.

In currency trading, the U.S. dollar slipped to 141.73 Japanese yen from 142.34 yen. The euro cost $1.1128, up from $1.1117.

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AP Business Writer Stan Choe contributed.