Chinese and South Korean stocks fell Wednesday on caution ahead of the U.S. Federal Reserve’s monetary-policy decision later in the day, while Japanese shares rallied in the wake of strong overnight gains on Wall Street.
In Japan, the Nikkei 225 sprinted ahead 237.94 points, or 1.8%, to 13,245.22
Hong Kong’s Hang Seng Index dropped 238.99 points, or 1.1%, to 20,986.89
Traders said the Federal Open Market Committee decision and Fed Chairman Ben Bernanke’s press conference later Wednesday will likely to remove a key source of uncertainty that has affected markets of late in terms of how long the central bank will maintain its $85 billion U.S. a month in bond purchases.
Some analysts said that even if the Fed doesn’t immediately signal its intention to downsize the quantitative-easing program — the Quantitative Easing has been a key tailwind behind global equity markets for several quarters — concerns that it will eventually do so may still have an impact.
In Japan, shipping stocks posted hefty gains, with utilities, steel makers and financials also making strong advances.
Shares of Kawasaki Kisen Kaisha Ltd. soared 9.5%, JFE Holdings Inc. climbed 6.4%, and Sumitomo Mitsui Financial Group Inc. added 5.2%.
Camera manufacturers rose in the wake of a Nikkei newspaper report that the top eight digital-camera makers are poised to get on the path to recovery, with majors Canon Inc. and Nikon Corp. anticipating strong profit growth.
Canon climbed 2.4%, and Nikon gained 1.7%.
In Sydney, shares of News Corp. tumbled 6.9% as the stock traded following the spinoff of the media group’s publishing assets. The company has retained the group’s entertainment assets.
Meanwhile, shares of New Newscorp Inc.— the company which holds the group’s publishing assets — was down 45 Australian cents at A$14.55 ($13.82 U.S.) in heavy volumes as it began trading for the first time.
Losses were spread across sectors in Hong Kong, with shares of China Coal Energy Co falling 3.4%, China Construction Corp. dropping 2.5%, and telecommunications firm China Unicom Hong Kong Ltd. shedding 2.5%.
Shares of heavyweight HSBC Holdings PLC slipped 0.4% after the Hong Kong Monetary Authority Tuesday said it was investigating HSBC and other banks over the possible rigging of local benchmark interest rates.
Several gold miners fell after the precious metal’s futures suffered a sharp price decline in the U.S. amid uncertainty related to the Fed’s monetary stimulus.
Perseus Mining Ltd. tumbled 6.6% shed 0.5% in Sydney, Zhaojin Mining Industry Co. fell 2.6% in Hong Kong
CHINA
The Shanghai Shenzhen CSI 300 fell 17.99 points, or 0.7%, to 2,400.76
Financial stocks were mostly lower in Shanghai, meanwhile. Shares of China Citic Bank Corp. dropped 1.8%, China Life Insurance Co. fell 1.1%, and Citic Securities Co. retreated 0.6%. Among gold plays, Zijin Mining Group Co. lost 2.1% in Shanghai.
In other markets;
Taiwan’s Taiex Index doffed 3.63 points, or 0.1%, to 8,007.39
Singapore’s Straits Times Index capsized 15.76 points, or 0.5%, to 3,213.79
Korea’s Kospi Index let go of 12.31 points, or 0.7%, to 1,888.37
In New Zealand, the Exchange 50 Gross Index docked 16.55 points, or 0.4%, to 4,445.55
In Australia, the S&P/ASX 200 regained 47.03 points, or 1%, to 4,861.38
