Asia’s major stock indexes saw another mixed session on Wednesday with investors waiting on clues about the US Fed’s next move on interest rates, while also being underwhelmed by the latest stimulus plans by Beijing.
The Fed takes centre stage later in the day when it is due to announce its rate decision at the conclusion of its two-day policy meeting. Market expectations are for policymakers to keep rates on hold.
Japan’s Nikkei share average rose for a third straight session, as Advantest and other chip-related stocks tracked overnight Wall Street gains.
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The Nikkei share average edged up 0.25%, or 82.65 points, to close at 32,926.35, while the broader Topix was ahead 0.08%, or 1.76 points, to 2,354.92.
US stocks closed at fresh year highs on Tuesday, after inflation data did little to alter views for the timing of a rate cut by the Fed.
But China stocks snapped a three-day rally, with Hong Kong shares also declining as key messages from the Central Economic Work Conference, focusing on defusing risks but lacking new property stimulus, failed to excite investors.
Analysts said the agenda-setting meeting of the country’s top leaders placed less emphasis on the property sector and instead focused more on domestic demand, in line with the market’s low expectations.
The blue-chip CSI 300 Index fell 1.67%, while the Shanghai Composite Index declined 1.15%, or 34.68 points, to 2,968.76. The Shenzhen Composite Index on China’s second exchange retreated 1.21%, or 22.67 points, to 22.67.
Most sectors declined, with liquor and real estate stocks dropping 3.7% and 2.8%, respectively, to lead the fall. Losses of property developer Sunac China widened in the afternoon, with its shares closing down 15%.
Hong Kong’s Hang Seng Index slipped 0.89%, or 145.75 points, to end at 16,228.75, and the Hang Seng China Enterprises Index dropped 1.13%. The Hang Seng Mainland Properties Index slid more than 2%.
Elsewhere across the region, in earlier trade, Sydney, Mumbai, Wellington, Manila and Taipei rose but Seoul, Bangkok and Jakarta were all down. Singapore was flat. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%.
US Dollar Defensive
Ahead of the Fed’s decision, global markets stayed on guard, with Eurostoxx 50 futures slipping 0.02%. FTSE futures were little changed. S&P 500 futures meanwhile rose 0.1% while Nasdaq futures bounced 0.17%.
US bond yields hovered near their recent lows, with the two-year Treasury yield last at 4.7327%, having earlier in December hit a roughly six-month trough of 4.5400%.
The benchmark 10-year yield steadied at 4.2063%, not far from its lowest in three months and the US dollar was on the defensive and stood at $1.2549 on the British pound. The greenback meanwhile last bought 145.77 yen.
British wage growth slowed by the most in almost two years, data on Tuesday showed, though pay was likely still rising too fast for the Bank of England to relax its tough stance against cutting interest rates.
While investors look for signs of rate cuts next year across major central banks, over in Japan, many are betting for the Bank of Japan to shift away from its ultra-loose monetary policy.
In commodity markets, gold slipped to a more than three-week low of $1,973.35 an ounce.
Brent bottomed at $72.57 a barrel, its lowest since late June, while US crude slid to $68.01 a barrel on concerns of softening demand and oversupply.
Key figures
Tokyo – Nikkei 225 > UP 0.25% at 32,926.35 (close)
Hong Kong – Hang Seng Index < DOWN 0.89% at 16,228.75 (close)
Shanghai – Composite < DOWN 1.15% at 2,968.76 (close)
London – FTSE 100 > UP 0.25% at 7,561.59 (0933 GMT)
New York – Dow > UP 0.48% at 36,577.94 (Tuesday close)
- Reuters with additional editing by Sean O’Meara
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