Asian Shares Mixed As Fed Meeting Gets Underway

Asian shares turned in a mixed performance during trading on Tuesday, with Chinese and Hong Kong markets tumbling amid China’s property sector woes.

The dollar was locked in a tight range ahead of Federal Reserve and Bank of England policy meetings this week.

Fed funds futures currently price in a 97.4 percent chance of no change in interest rates when the Fed delivers its rate decision on Wednesday. The Bank of England is also set to stand pat on rates on Thursday.

Gold struggled for direction in Asian trading, while oil edged up slightly as markets waited for a U.S. response to the deadly attack on American troops in Jordan.

Meanwhile, Saudi Arabian Oil Co., commonly known as Saudi Aramco, said that it has been ordered by the Saudi government to keep its oil production capacity at 12 million barrels a day.

China’s Shanghai Composite Index slumped 1.8 percent to 2,830.53 as the court-ordered liquidation of property giant China Evergrande piled pressure on policymakers to cut rates in the world’s second-largest economy.

Hong Kong’s Hang Seng Index plummeted 2.3 percent to 15,703.45, dragged down by property developers.

Shares of Evergrande, the world’s most heavily indebted real estate company with more than $300 billion in liabilities, remained suspended from trading.

China Evergrande New Energy Vehicle Group shares soared 4.4 percent as they resumed trading.

Japanese markets ended slightly higher, giving up some early gains. The Nikkei 225 Index edged up 0.1 percent to 36,065.86, while the broader Topix Index settled 0.1 percent lower at 2,526.93.

Chip-related shares gained ground, with Advantest, Renesas Electronics and Shin-Etsu Chemical rising 2-3 percent.

Automakers Honda Motor, Toyota and Isuzu dropped 1-3 percent as the yen gained positive traction against its American counterpart for the second straight session.

Tsuruha Holdings lost nearly 9 percent after Aeon said it was negotiating to buy activist Oasis’ 13 percent stake in the company.

In economic news, Japan’s jobless rate fell to 2.4 percent in December from the previous month, government data showed earlier today.

South Korea’s Kospi finished marginally lower at 2,498.81, giving up all early gains ahead of the Fed’s rate decision.

Korea Electric Power shed 1.6 percent and SK Innovation fell 2.9 percent, while steelmaker Posco Holding added 1.3 percent.

Australian stocks eked out modest gains despite retail sales tumbling more than expected in December. The benchmark S&P ASX 200 Index rose 0.3 percent to 7,600.20, while the broader All Ordinaries Index settled 0.3 percent higher at 7,835.

Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index finished marginally higher at 11,914.40.

U.S. stocks rose notably overnight. while treasury yields dipped as the Treasury Department reduced its estimates for first quarter borrowing.

The Dow rose 0.6 percent and the S&P 500 added 0.8 percent to set new record closing highs, while the tech-heavy Nasdaq Composite jumped 1.1 percent to reach its best closing level in two years.