Stock markets in Asia finished in a mixed state on Wednesday ahead of the US Fed’s much-awaited interest rate decision later in the global day, with trading in Hong Kong cut short as the city came under a typhoon warning.
In Japan, the Nikkei 225 was down 0.06% at 27,663.39, as the yen strengthened 0.82% on the dollar to last trade at JPY 147.06.
Technology conglomerate SoftBank Group was up 1.99%, while automation specialist Fanuc lost 1.43% and fashion firm Fast Retailing was off 0.12%.
The broader Topix index was 0.1% higher by the end of trading in Tokyo, settling at 1,940.46.
Minutes from the Bank of Japan’s most recent meeting were released during the day, suggesting decision makers were keen to continue their ultra-easy monetary policy even in the face of rising inflation.
Members of the BoJ’s board agreed they would “persistently continue with large-scale monetary easing”, with one member noting that the policy should continue even with short-term inflation acceleration.
Separately, the central bank’s governor Haruhiko Kuroda told the country’s parliament that its policy on yield curve control could be amended going forward.
“If the achievement of our 2% inflation target comes into sight, making yield curve control more flexible could become an option,” Kuroda reportedly told politicians, according to Reuters.
On the mainland, the Shanghai Composite was up 1.15% at 3,003.37, and the technology-heavy Shenzhen Component was 1.34% firmer at 10,877.51.
South Korea’s Kospi managed gains of 0.07% to 2,336.87, while the Hang Seng Index in Hong Kong was 2.41% higher at 15,827.17 by the time its session was truncated.
Trading in the special administrative region was halted at 1415 local time, as the city came under a tropical cyclone warning.
The strong gains before the halt made for the second day of solid growth for Hong Kong’s benchmark index, as it clawed its way back from heavy losses in the wake of the Chinese Communist Party’s 20th National Congress.
Sentiment in the Greater China region was also boosted by swirling social media reports of China possibly reopening from its ongoing Covid restrictions in March.
Macau casino operators were among the leading risers during Hong Kong trading, as an online system to grant mainland residents visas for the gambling and leisure hub was rolled out.
Galaxy Entertainment jumped 6.67%, Sands China surged 12.04%, SJM Holdings added 10.98%, and Wynn Macau was 11.71% firmer.
The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 0.67%, while SK Hynix rose 0.72%.
“US markets tried to mount a rally but fizzled on stronger-than-expected jobs data yesterday,” said Neil Wilson at Markets.com of the moves overnight.
“Asian markets built on gains from the prior session as market chatter still suggests China is looking for a way to end its zero-Covid policy.
“Seems wishful and just an ‘anything-goes’ type rally from oversold levels, pre-Fed moves.”
Oil prices were higher at the end of the Asian day, with Brent crude futures last up 0.15% on ICE at $94.79 per barrel, and West Texas Intermediate ahead 0.14% at $88.49 on NYMEX.
In Australia, the S&P/ASX 200 managed gains of 0.14% to 6,986.70, while across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.3% to 11,282.78.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.38% at AUD 1.5578, and the Kiwi advancing 0.65% to NZD 1.7007.
Reporting by Josh White for Sharecast.com.
