Investing.com - Asian stock markets outside Japan were mostly lower in cautious trade on Wednesday, as investors awaited the outcome of the Federal Reserve’s policy meeting later in the session, amid expectations the central bank will start tapering its USD85-billion-a-month bond-buying program.
Markets in Japan outperformed the region as the yen weakened against the U.S. dollar, boosting sentiment.
During late Asian trade, Hong Kong's Hang Seng Index inched down 0.1%, Australia’s ASX/200 Index ended 0.25% lower, while Japan’s Nikkei 225 Index rallied 1.25%.
Market analysts expect the Fed will start cutting monthly bond purchases by USD10 billion to USD75 billion when it concludes its two-day policy meeting later on Wednesday.
Monthly purchases of Treasuries will be scaled back by USD10 billion to USD35 billion, while mortgage-bond buying will remain unchanged at USD40 billion.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
In Tokyo, the Nikkei rallied to a two-month high as traders monitored movements in the currency market.
USD/JPY rose to hit a session high of 99.32, moving further away from Monday’s two-week low of 98.44. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Automakers Toyota and Honda saw shares rise 1.45% and 1.85% respectively, while Sony and Sharp advanced 0.9% and 2.45%.
Japanese megabanks were also higher with shares of the nation’s largest lender Mitsubishi UFJ Financial Group gaining 1.9%, while Sumitomo Mitsui Financial Group and Nomura Holdings added 2% and 2.1% respectively.
Index heavyweights Fast Retailing and Softbank saw shares climb 3.3% and 2.2% respectively.
Meanwhile, in Hong Kong, the Hang Seng swung between small gains and losses in cautious trade as investors positioned ahead of the outcome of the Fed’s policy meeting.
Gold producers Zijin Mining Group and Zhaojin Mining Industry Company declined 1.6% and 2.7% respectively as gold prices traded near a six-week low ahead of the Fed’s decision.
Elsewhere, in Australia, the benchmark ASX/200 Index inched lower, but remained near a five-year high.
Gold miners were lower, with Newcrest Mining Group and Kingsgate Consolidated tumbling 3.3% and 3.5% respectively, while Perseus Mining dropped 5.2%.
Looking ahead, European stock market futures pointed to a steady open.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures dipped 0.1%, London’s FTSE 100 futures were little changed, while Germany's DAX futures pointed to a decline of 0.1% at the open.
The U.S. was to release data on building permits and housing starts later Wednesday, ahead of the Fed policy announcement. The Bank of England was to publish the minutes of its September meeting.
Markets in Japan outperformed the region as the yen weakened against the U.S. dollar, boosting sentiment.
During late Asian trade, Hong Kong's Hang Seng Index inched down 0.1%, Australia’s ASX/200 Index ended 0.25% lower, while Japan’s Nikkei 225 Index rallied 1.25%.
Market analysts expect the Fed will start cutting monthly bond purchases by USD10 billion to USD75 billion when it concludes its two-day policy meeting later on Wednesday.
Monthly purchases of Treasuries will be scaled back by USD10 billion to USD35 billion, while mortgage-bond buying will remain unchanged at USD40 billion.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
In Tokyo, the Nikkei rallied to a two-month high as traders monitored movements in the currency market.
USD/JPY rose to hit a session high of 99.32, moving further away from Monday’s two-week low of 98.44. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Automakers Toyota and Honda saw shares rise 1.45% and 1.85% respectively, while Sony and Sharp advanced 0.9% and 2.45%.
Japanese megabanks were also higher with shares of the nation’s largest lender Mitsubishi UFJ Financial Group gaining 1.9%, while Sumitomo Mitsui Financial Group and Nomura Holdings added 2% and 2.1% respectively.
Index heavyweights Fast Retailing and Softbank saw shares climb 3.3% and 2.2% respectively.
Meanwhile, in Hong Kong, the Hang Seng swung between small gains and losses in cautious trade as investors positioned ahead of the outcome of the Fed’s policy meeting.
Gold producers Zijin Mining Group and Zhaojin Mining Industry Company declined 1.6% and 2.7% respectively as gold prices traded near a six-week low ahead of the Fed’s decision.
Elsewhere, in Australia, the benchmark ASX/200 Index inched lower, but remained near a five-year high.
Gold miners were lower, with Newcrest Mining Group and Kingsgate Consolidated tumbling 3.3% and 3.5% respectively, while Perseus Mining dropped 5.2%.
Looking ahead, European stock market futures pointed to a steady open.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures dipped 0.1%, London’s FTSE 100 futures were little changed, while Germany's DAX futures pointed to a decline of 0.1% at the open.
The U.S. was to release data on building permits and housing starts later Wednesday, ahead of the Fed policy announcement. The Bank of England was to publish the minutes of its September meeting.