Investing.com - Asian shares fell on Wednesday, with Sydney and Tokyo leading the way ahead of Fed review of interest rates expected to hold pat, but also signal further clarity on a widely expected hike in December.
The S&P/ASX 200 fell 1.52% as Australia reported building approvals for September slumped 8.7%, compared with an expected 3.0% decline and private house approvals rose 2.3%, compared with a revised up 0.8% fall in the previous month.
The number of dwellings fell on a sharp drop in in multi-unit approvals which offset a rise in house approvals. The fall pushed trend approvals into the negative for four months in a row.
Elsewhere the Nikkei 225 slumped 1.56% and the Shanghai Composite Index eased 0.14%, while Hong Kong's Hang Seng Index fell 1.28%.
The U.S. central bank is not expected to raise interest rates, but could signal its intent to hike in December amid signs the economy is picking up steam. Traders are currently pricing in a less than 10% chance of a rate hike this week, according to Investing.com's Fed Rate Monitor Tool. For December, odds stood at 77.4%. The review also comes ahead of nonfarm payrolls data on Friday and the U.S. presidential vote on Nov. 8, providing further reasons for cautious trade.
Overnight, U.S. stocks were lower after the close on Tuesday, as losses in the Utilities, Telecoms and Financials sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average declined 0.58% to hit a new 1-month low, while the S&P 500 index lost 0.68%, and the NASDAQ Composite index declined 0.69%.