Asian Market Opens Mixed Ahead of Fed Decision Amid Lower Oil Prices

The Asian market opened mixed on Monday as investors weighed various factors, including improving geopolitical sentiment and lower oil prices. Japan's AI stocks rebounded ahead of the Federal Reserve decision, with the Nikkei 225 rising 0.24% after a significant drop last week.

However, not all markets shared this optimism, as South Korean shares declined due to different levels of investor confidence. The Hang Seng Index and Shanghai Composite Index increased by 0.63% and 0.53%, respectively, following the recovery of the Chinese economy and improving investor sentiment.

The lower oil prices, which fell by 4.7% to $92.27 per barrel for Brent crude and 5.0% to $84.89 for U.S. crude, reduced inflation worries and helped the Asian market. This decrease in energy prices lowered the pressure on global inflation expectations, causing a one-third chance of a new U.S. Federal Reserve interest rate decision.

Goldman Sachs' analysts consider the upcoming Fed meeting unusual due to the committee's split on monetary policy decisions and emerging geopolitical risks during the communication blackout. The Asian market will also closely monitor the Bank of England and Bank of Japan meetings later this week, with both institutions expected to leave interest rates unchanged.