Asian Shares Mixed As Fed Decision Looms
Asian stocks ended mixed on Wednesday as investors braced for a hawkish Fed outcome. Concluding a two-day policy meeting later today, the Federal Reserve is expected to announce the early termination of QE asset purchases and signal its first rate hike in March to fight inflation.
Markets in Australia and India were closed for holidays. China’s Shanghai Composite index fluctuated before ending 0.7 percent higher at 3,455.67, averting a technical bear market. Hong Kong’s Hang Seng index finished 0.2 percent higher at 24,289.90 as technology stocks advanced.
Japanese shares closed at a 13-month low amid Covid-19 concerns and ahead of Fed decision. The Nikkei 225 Index slipped 120.01 points, or 0.4 percent, to 27,011.33, its lowest closing level since December 28, 2020 as newly confirmed Covid-19 infections in the country topped 60,000 for the first time.
The broader Topix closed 0.3 percent lower at 1,891.85, with oil and coal product, pulp and paper, as well as textile and apparel issues pacing the decliners. Odakyu Electric Railway gave up 2.8 percent and Ricoh slumped 5.3 percent.
Seoul stocks fell for a fourth day to close at an over one-year low as uncertainties surrounding an increasingly hawkish Federal Reserve and Covid-19 worries overshadowed data showing improving consumer confidence in the country.
The Kospi dropped 11.15 points, or 0.4 percent, to close at 2,709.24, marking the lowest level since the 2,700.93 close on December 8, 2020.
Samsung Electronics lost about 1 percent, Hyundai Motor declined 2.3 percent and Naver gave up 2.8 percent, while chemical firm LG Chem and financial heavyweight KB Financial Group both rose over 3 percent.
New Zealand shares ended higher as investors hunted for battered stocks affected by the recent sell-off.
The benchmark NZX-50 Index rose 57.44 points, or 0.5 percent, to 12,185.65 ahead of consumer price inflation data for the December quarter, due on Thursday. Kathmandu Holdings, Pacific Edge, Network Television and Vista Group climbed 2-3 percent.
U.S. stocks ended mostly lower overnight after another extremely volatile session amid interest-rate worries.
The Dow fell more than 800 points before cutting most losses to end 0.2 percent lower for the day. The S&P 500 lost 1.2 percent, while the tech-heavy Nasdaq Composite plunged 2.3 percent.
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