CANBERA (dpa-AFX) - Asian stocks fell broadly on Tuesday as global growth worries persisted and investors awaited the FOMC rate decision.
The U.S. Federal Reserve begins its two-day policy meeting later today and is expected to raise rates for a fourth time this year. However, the accompanying statement is likely to be dovish amid mounting risks to global growth.
China's Shanghai Composite index ended down 21.32 points or 0.82 percent at 2,576.65 after Chinese President Xi Jinping offered no new specific measures for the implementation of reforms in a highly anticipated speech that marked the 40th anniversary of China's reform. Hong Kong's Hang Seng index fell 1.05 percent to close at 25,814.25.
Japanese shares hit a nine-month low as caution set in ahead of the U.S. Federal Reserve and the Bank of Japan's monetary policy decisions due on Wednesday and Thursday, respectively.
The Nikkei average ended down 391.43 points or 1.82 percent at 21,115.45 while the broader Topix index closed 1.99 percent lower at 1,562.51, the lowest level since May 2017.
Takeda Pharmaceutical plummeted 9 percent after Moody's Investors Service downgraded its credit rating by three notches, citing concerns about its debt level following the takeover of Shire.
SoftBank Group lost 3.3 percent ahead of the proposed $23-billion Tokyo listing of its mobile business. Canon, Toyota Motor, Panasonic and Sony declined 1-4 percent as the yen gained ground on safe-haven demand.
Hitachi shed 2.6 percent after it reached a deal to acquire the power grid business of Swiss engineering group ABB.
Australian markets suffered heavy losses after major U.S indexes ended down over 2 percent overnight. The S&P/ASX 200 index fell 68.80 points or 1.22 percent to 5,589.50 after rising 1 percent in the previous session. The broader All Ordinaries index ended down 71.10 points or 1.24 percent at 5,661.80.
Financials paced the decliners, with the big four banks losing 1-3 percent. Mining heavyweights BHP and Rio Tinto fell slightly while gold miners St Barbara, Northern Star Resources and Evolution Mining climbed 2-3 percent after gold prices hit one-week high on dollar weakness.
Woodside Petroleum, Santos, Origin Energy and Oil Search dropped 1-3 percent as oil prices fell for a third straight session on worries about oversupply. Caltex Australia slumped 5.5 percent after the company issued softer-than-expected profit guidance.
In economic news, the minutes from the Reserve Bank of Australia's December 4 monetary policy meeting showed that board members remain worried about tightening credit and sluggish consumption.
Seoul stocks fell on deepening concerns over a slowing global economy. The benchmark Kospi dropped 8.98 points or 0.43 percent to end at 2,062.11.
Conglomerate LG Electronics tumbled 3.2 percent on a Bloomberg report that it would begin selling big-screen TVs in 2019 that can be rolled up and put away like a poster.
Auto suppliers bucked the weak trend to end sharply higher after the government unveiled a policy package to support the industry. Shares of PungkukAlcholnd jumped 29.7 percent and Inzi Controls Co surged 20.6 percent.
New Zealand markets finished notably lower, dragged down by consumer staple stocks such as A2 Milk and Synlait Milk. The benchmark S&P/NZX 50 index dropped 57.22 points or 0.65 percent to 8,688.37. Fletcher Building rose over 2 percent after selling a major asset and saying it is now in a position to resume dividends.
Overnight, U.S. stocks sold off for a second straight session as manufacturing and housing data disappointed, President Donald Trump renewed his attacks on the Federal Reserve and a federal judge in Texas struck down the Affordable Care Act.
The Dow lost 2.1 percent to hit its lowest closing level in over eight months, while the tech-heavy Nasdaq Composite slumped 2.3 percent and the S&P 500 plunged 2.1 percent to reach their lowest closing levels in over a year.
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