Asia report: Markets mixed as investors wait for Fed decision

Markets in Asia finished in a mixed state on Wednesday, as investors closed their wallets and held their breath ahead of a rate decision from the US Federal Reserve later in the global day.

In Japan, the Nikkei 225 was down 0.6% at 20,987.92, as the yen strengthened 0.17% against the dollar to last trade at JPY 112.33.

The broader Topix index was 0.41% lower in Tokyo, finishing at 1,556.15.

SoftBank Corporation - the cellular division of technology conglomerate SoftBank Group - was floated during the session in Japan’s biggest-ever initial public offering, but finished its first day in the red.

Shares in the firm closed down 14.5%, with the shares being the most heavily-traded of the day on the Tokyo bourse.

On the mainland, the Shanghai Composite was 1.05% lower at 2,549.56, and the smaller, technology-heavy Shenzhen Composite fell 1.38% to 1,294.49.

Oil prices were under particular pressure in China after a serious slide in crude prices overnight, as China Petroleum and Chemical and Petrochina shares fell 2.75% and 2.1% respectively in Shanghai trading.

South Korea’s Kospi was 0.81% higher at 2,078.84, while the Hang Seng Index in Hong Kong managed gains of 0.2% to 25,865.39.

At the top of the agenda for most traders was the looming interest rate decision from the Fed, with most market watchers anticipating a hike in the central bank’s rate target to see the US economy into Christmas.

The Fed’s rhetoric on how it viewed prospects for 2019 would also be very closely read.

Oil prices were doing their level best to claw back from the mini-crash seen during US hours overnight, with Brent crude last up 0.67% at $56.64 per barrel, and West Texas Intermediate adding 0.58% to $46.87.

In Australia, the S&P/ASX 200 slipped 0.16% to settle at 5,580.60, with energy plays also under the cosh in the sunburnt country.

Origin Energy was down 5.69% and Woodside Petroleum slid 1.82%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.9% at 8,762.19, led higher by subscription broadcaster Sky - not related to its London-listed namesake - which rose 8.5% as it staged a recovery from a dip earlier in the week.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.09% at AUD 1.3913 and the Kiwi advancing 0.22% to NZD 1.4570.