CANBERA (dpa-AFX) - Asian stocks ended mixed on Wednesday as investors monitored oil price movements and looked ahead to the U.S. Federal Reserve's monetary policy decision due later in the day. The Fed is expected to sound a bit more dovish after raising rates by 25 basis points.
China's Shanghai Composite index fell 1.05 percent to 2,549.56 while Hong Kong's Hang Seng index rose 0.20 percent to 25,865.39. Trade tensions remained in focus after U.S. Treasury Secretary Steven Mnuchin said that U.S.-China trade talks to expand on a tariff truce are planned for January.
Japanese shares fell as trade data disappointed and caution set in ahead of the Bank of Japan's monetary policy decision due on Thursday.
Japan posted a merchandise trade deficit of 737.3 billion yen in November, the Ministry of Finance said. That missed forecasts for a deficit of 630.0 billion yen following the 450.1 billion yen shortfall in October.
Exports were up just 0.1 percent year on year, shy of expectations for a gain of 1.1 percent following the 8.2 percent spike in the previous month. Imports were up an annual 12.5 percent versus expectations for an increase of 12.0 percent and down from 19.9 percent a month earlier.
The Nikkei average fell 127.53 points or 0.60 percent to 20,987.92 while the broader Topix index closed 0.41 percent lower at 1,556.15.
SoftBank Corp., SoftBank Group's mobile unit, saw poor market debut, with shares plunging 15 percent from the IPO price of 1,500 yen announced earlier this month. Tech stocks ended mixed, with Advantest rallying 2.8 percent while Tokyo Electron lost 4.4 percent. Oil company Inpex plummeted 7.2 percent and Japan Petroleum tumbled 5 percent.
Australian markets fell slightly amid weakness in the energy sector after U.S. oil prices fell over 7 percent overnight on fears of oversupply. Banks gained ground, helping limit the downside in the broader market.
The benchmark S&P/ASX 200 index ended down 8.90 points or 0.16 percent at 5,580.60 after falling 1.2 percent on Tuesday. The broader All Ordinaries index dropped 11.80 points or 0.21 percent to 5,650.
Woodside Petroleum, Santos, Oil Search and Origin Energy slumped 2-6 percent after oil prices dropped further overnight.
National Australia Bank rose 0.8 percent. The bank is scrapping its overhauled executive pay structure after a first strike in which more than 80 percent of shareholders voted against it. Rivals ANZ and Commonwealth rose over 1 percent each.
Gold miner Evolution jumped over 4 percent and St Barbara soared 5.2 percent after gold prices extended gains overnight.
Graincorp dropped 1.4 percent. The bulk grain handler said it is providing its suitor Long-Term Asset Partners due diligence after it received an A$2.38 billion all-cash buyout proposal earlier in December.
Seoul stocks advanced on the back of institutional buying ahead of key central bank meetings. The benchmark Kospi ended up 16.73 points or 0.81 percent at 2,078.84, with automakers leading the surge after the government extended a consumption tax break on new car purchases until July 2019. Hyundai Motor rallied 4.2 percent and parts maker Hyundai Mobis added 2.8 percent.
New Zealand shares rose sharply amid bets the U.S Federal Reserve will soften its interest rate outlook for the coming year after delivering a 25 bps rate hike later in the day. The benchmark S&P/NZX 50 index climbed 73.82 points or 0.85 percent to 8,762.19. Pay-TV operator Sky Network Television soared 8.5 percent to extend its rebound after falling below $2 earlier this week.
In economic releases, New Zealand's seasonally adjusted current account deficit narrowed to NZ$2.6 billion in the third quarter of 2018, NZ$102 million smaller than the June 2018 quarter deficit (NZ$2.7 billion), Statistics New Zealand said in a report.
Overnight, U.S. stocks fluctuated before finishing modestly higher after two sessions of steep losses. The Dow rose 0.4 percent and the tech-heavy Nasdaq Composite inched up half a percent while the S&P 500 closed on a flat note.
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