Most Asian currencies and stocks rose on Tuesday despite mild overnight losses on Wall Street, as investors awaited the outcome of the US Federal Reserve policy meeting.

Singapore stocks rose 1.1% to hit a near one-month high, followed by the Thai benchmark gaining 0.6% to mark its best day in two weeks. Stocks in India and China also advanced.

The Fed is widely expected to hike its benchmark overnight interest rate by 75 basis points on Wednesday, its fourth such increase in a row. But for the December meeting, Fed funds futures are split on the odds of a 75 or 50-basis points increase.

The Singapore dollar and the Thai bhat climbed 0.2% each, and the Indian rupee edged 0.1% higher.

The Malaysian ringgit and the Taiwan dollar , however, lost 0.1%, each.

“Market sentiment consolidated ahead of the Fed meeting on Monday and Tuesday as well. Equity investors are generally more positive about the Fed policy calibration than bond investors,” OCBC analysts said in a note.

Asian FX drag as US dollar firms on hawkish Fed bets

The Indonesian rupiah fell 0.4% to a more than two-year low. The country’s inflation eased in October but remained above the central bank’s target range for five straight months, against market expectations for a slight acceleration.

The headline annual inflation rate cooled to 5.71% in October, compared with 5.99% forecast in a Reuters poll. Bank Indonesia targets inflation within a range of 2% to 4%.

“It is common for Indonesia to have lower inflation numbers in October and November on account of the harvesting season. Price of staple foods are usually lower during these months and that is why we are seeing a dip in the inflation number,” said Fakhrul Fulvian, economist at Trimegah Securities.

The annual core inflation rate, which excludes government-controlled prices and volatile food prices, picked up pace last month to 3.31%, from 3.21% in September. The poll had expected 3.40%.

However, currencies and stocks in the region continued to remain cautious as the economic outlook in China looked bleak. After its factory activity unexpectedly fell in October, the country’s property market continued to slump last month.

Private data showed that home prices and sales fell in the world’s second-largest economy, suggesting lacklustre sentiment and a bleak outlook amid strict COVID-19 curbs that hit consumer confidence.“The resurgence of COVID-19 is likely to cap China’s recovery in the fourth quarter also,” OCBC analysts said.

Highlights:

** Indonesian 10-year benchmark yields remained unchanged from Monday at 7.540%

** Asia’s factory output weakens on global slowdown, China COVID curbs

** Bank Negara Malaysiaset to hike for fourth time in a row on Nov. 3