Asian stocks mostly lower ahead of Fed; Nikkei down 0.73%

Investing.com - Asian stocks traded mostly lower Wednesday as traders took a cautious approach to riskier assets ahead of the release of minutes from the most recent Federal Reserve meeting. Those minutes will be published during Wednesday’s U.S. session.

In Asian trading Wednesday. Japan’s Nikkei 225 fell 0.73% even after Bank of Japan Governor Haruhiko Kuroda said he would quickly deploy additional stimulus measures if macroeconomic risks increase. Those risks include Japan’s plan to raise a consumption tax and global economies.

Kuroda indicated that the central bank has the capacity to ease policy to achieve its price target, Reuters report. The Kuroda comments come as investors are jittery about what to expect out of the Fed. Imminent tapering of U.S. quantitative easing could put a burden on BoJ to reinforce confidence in global markets by bolstering its own easing efforts.

Hong Kong’s Hang Seng slid 1.39% while the Shanghai Composite fell 0.29%. Chinese stocks are again being pinched as global investors actively withdraw money from ETFs focused on emerging markets. Hong Kong stocks are in the midst of a seven-day losing streak.

Technology and utility shares are among the lone bright spots in Hong Kong this while energy shares have been laggards.

Australia’s S&P/ASX 200 Index added 0.1% despite disappointing news from BHP Billiton, the world’s largest mining company. In addition to the Fed minutes, Aussie traders are also focusing on Australian national elections, scheduled to take place early next month.

Commentary from Australia’s ABC News said the Aussie could be poised for a post-election decline not so much because of anything happening in that country, but more because of new bull market for the greenback.

New Zealand’s NZSE 50 climbed 0.99% a day after the Reserve Bank of New Zealand said the kiwi as overvalued, adding that while a rate rise might be needed next year, it wasn't needed now.

In addition, RBNZ Governor Graeme Wheeler announced home lending restrictions to help cool the market without having to raise interest rates.

South Korea’s Kospi lost 0.80% while Singapore’s Straits Times Index fell 0.46%. S&P 500 futures fell 0.15% a day after the benchmark U.S. index rose 0.38%.