Shanghai stocks fell Wednesday, as investors worried that potential initial public offerings could divert liquidity from the market and hesitated to take big bets ahead of the U.S. Federal Reserve’s next meeting.
The Nikkei 225 gained 18.55 points, or 0.1%, to 19,649.18.
In Hong Kong, the Hang Seng faded 75.99 points, or 0.3%, to 22,188.26
The Nikkei closed near its strongest level since late August after the U.S. dollar touched its strongest level in eight days against the Japanese yen. The yen touched ¥123.48 to one U.S. dollar overnight, and last traded at ¥123.30.
A weaker yen is a boon to Japanese exporters because their goods become cheaper to global buyers
An uptick in U.S. inflation, released Tuesday, is the latest signal supporting expectations that the Fed will raise short-term interest rates next month. That, coupled with investors’ flight to the dollar after the Paris terror attacks, pushed the currency to its strongest level in seven months against the euro late Tuesday in Asia, with the euro at $1.0629 U.S. It was last at $1.0654 U.S. in Asia.
Some investors expect Friday’s terror attacks in Paris will prompt more stimulus from the European Central Bank, which could further weaken the euro.
Still, property shares finished up nearly 2% amid expectations for further stimulus from Beijing. Hong Kong-listed China Vanke Co. rose 4%.
In Australia, shares rebounded after tumbling prices of iron ore, gold, oil and copper sparked losses in earlier trading. In the course of the day, investors shifted money out of the ailing resources sector and into high-dividend sectors including utilities, banks and telecommunications.
Dexus Property Group rose 1.7%, Bank of Queensland gained 2.6% and Telstra Corp., the country’s biggest telecom, climbed 1%.
CHINA
The CSI 300 in Shanghai fell 42.81 points, or 1.1%, to 3,715.58.
In China, investors anticipate that officials could announce as soon as Friday plans to re-launch mainland listings, which were halted during the summer selloff. That could spur investors to take cash out of current holdings and cause further losses, some experts said.
China’s securities watchdog said last week it will allow 28 IPOs by year-end and let the market to play a bigger role in the supply and pricing of new listings.
Data earlier showed the average price of new homes in 70 Chinese cities rose for the sixth straight month in October, though the pace slowed. Home prices were up 0.07% from a month earlier, compared with a 0.2% gain in September, according to Wall Street Journal calculations from the data.
China’s home buyers have benefited from looser regulations and lower borrowing costs as officials try to boost a flagging property market.
In other markets
In Singapore, the Straits Times Index let go of 30.7 point, or 1.1%, to 2,886.08
The Kospi index in Korea eased 0.7 points to 1,962.88
Taiwan’s Taiex index faded 78.95 points, or 0.9%, to 8,340.47
In New Zealand, the NZX 50 added 12.21 points, or 0.2%, to 5,979.81
The ASX 200 grew 14.87 points, or 0.3%, to 5,133.11
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