Asian Shares Mixed As Investors Await Fed Decision

Asian stocks ended mixed in cautious trading on Wednesday as investors waited to see what comes of the Federal Reserve meeting later in the day.

A 25 basis point rate cut is likely, while the release of the Summary of Economic Projections and a press conference by Fed Chair Jerome Powell could signal changes in the size and pace of projected future rate cuts.

Analysts foresee a hawkish shift in the dot plot, consistent with the movement in market expectations since the last update in September.

The U.S. dollar held steady against its major peers in Asian trading and gold was little changed, while oil prices climbed after a two-day decline as industry data showed a sizeable drawdown in U.S. commercial crude inventories.

China’s Shanghai Composite Index rose 0.6 percent to 3,382.21 after reports emerged that China is planning a record budget deficit for 2025 and that the State-owned Assets Supervision and Administration Commission has urged state-owned firms to improve market value management of listed companies.

Hong Kong’s Hang Seng Index advanced 0.8 percent to close at 19,864.55 on hopes that Chinese stimulus measures will help spur consumption.

Japanese markets fell notably, heading into Thursday’s BoJ interest-rate decision. The central bank is likely to keep its benchmark interest rate unchanged as it awaits greater clarity on domestic wages and spending trends as well as policy changes by U.S. President-elect Donald Trump.

The Nikkei 225 Index dropped 0.7 percent to 39,081.71, while the broader Topix Index settled 0.3 percent lower at 2,719.87.

Auto stocks surged on news of a potential Nissan-Honda tie-up. Nissan Motor shares soared 23.7 percent, while Honda Motor fell over 3 percent. Toyota Motor rose over 2 percent and Mitsubishi Motors spiked 19.7 percent.

Seoul stocks rallied, with the Kospi jumping 1.1 percent to 2,484.43. Large-cap shares gained ground, with Hyundai Motor surging 4.8 percent and Samsung Electronics adding 1.3 percent.

Australian markets ended on a flat note after a choppy session. Healthcare stocks gained ground, offsetting losses among energy stocks and gold miners.

Insignia Financial slumped 4.2 percent after the money manager rejected Bain Capital’s A$2.67 billion ($1.69 billion) takeover bid.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index slipped 0.4 percent to end at 12,865.55.

U.S. stocks ended lower overnight as data showing stronger than expected retail sales growth in November added to the debate about the Fed’s policy path for 2025.

The Dow fell 0.6 percent to close lower for the ninth straight session, logging its longest losing streak since 1978.

The tech-heavy Nasdaq Composite gave up 0.3 percent and the S&P 500 declined 0.4 percent.

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