Asia close: Region's bourses mixed as chances of March Fed hike reach 50%

Asian bourses ended the session on a mixed note despite a slightly higher close on Wall Street as traders waited on a speech from US president Donald Trump the next day and further Fed speak.

Traders were hoping Trump would provide further details on his tax cut plans.

To take note of, on Monday evening the president of the Federal Reserve bank of Dallas, Robert Kaplan, told an audience the US central bank should hike rates "sooner rather than later".

That came as Fed funds futures were pricing-in 50.0% odds of another 25 basis point increase at the Fed's 14-15 March policy meeting, according to Bloomberg data, versus 34.0% one week before.

Japan's benchmark Topix edged higher by 0.04% to 1,187.96, alongside gains of 0.04% for the Nikkei-225 which ended the day at 19,118.99 while dollar/yen was trading 0.45% lower at 112.22.

That was despite the release of industrial production data for January showing a 0.8% month-on-month drop, versus forecasts for a rise of 0.4%.

In parallel, in remarks to a parliamentary committee the country's PM Shinzo Abe and Bank of Japan chief, Haruhiko Kuroda defended the monetary authority's policies.

Kuroda also said long-term interest rates might rise if the economy strengthened and inflation rose to 2.0%.

Perhaps, but at least some traders were focusing on the prospect for increased rate spreads between the US and Japan, possibly explaining weakness in the yen.

"Our medium-term bearish view on USD-JPY remains unchanged, largely predicated on actual and expected developments in real-rate differentials (relative to what is priced in by the FX market) and yen undervaluation. But from a risk/reward perspective, we feel it makes sense to go into the event flat (having accumulated a positive P&L) and re-asses afterwards," analysts at UniCredit said

The Shanghai Stock Exchange's Composite index was also higher, rising 0.40% to 3,241.73.

Among the region's other main bourses Sydney's ASX edged down 0.21% to 5,712.22, Taiwan's TAIEX lost 0.19% to 9,750.47 and India's BSE slipped 0.11% to 9,190.73.

New Zealand's NZX 20 on the other hand jumped 1.50% to 4,968.39 while the South Korean Kospi closed up by 0.29% at 2,091.64.

In corporate news, South Korea's Doosan Heavy Industries and Construction slumped 7.7% after announcing it would sell bonds with warrants.

Shares in VietJet Aviation Joint Stock Co. rocketed by 20% - the daily trading limit - in Ho Chi Minh trading on the day of its stockmarket debut.