Stocks in Australia were cautious in the morning after the U.S. Federal Reserve left interest rates unchanged at its latest policy meeting.
The ASX 200 was largely flat in early trade, with the major sectors in mixed territory. Energy stocks fell by 0.77 percent while the heavily-weighted financial subindex gained 0.38 percent.
Meanwhile, futures pointed to a cautious open for the Nikkei 225 in Japan. The Nikkei futures contract in Chicago was at 22,480 while its counterpart in Osaka was at 22,430. The index last closed at 22,486.92.
The mainland China markets, which are due to open at 9:30 a.m., will be closely watched as trade tensions between Washington and Beijing continue to weigh on investor sentiments.
One economist warned that relations between the U.S. and China could get more frosty now that the midterm elections stateside are over.
“The upshot is that there will be more noise and volatility on China,” TS Lombard’s Chief U.S. Economist, Steve Blitz, said in a note on Thursday, commenting on the post-election environment. Democrats, including Senator Chuck Schumer, are “China hawks,” Blitz said.
More economic data will be out at 9:30 a.m. HK/SIN, when markets open in China, with the release of the country’s Consumer Price Index and Producer Price Index for the month of October.