Asia report: Markets lower amid focus on China data, Fed decision

Most markets in Asia were in the red on Wednesday, after the release of Chinese data broadly in line with expectations, and as volumes lowered as investors kept their wallets closed ahead of the Federal Reserve’s decision on US interest rates.

In Japan, the Nikkei 225 lost 0.08% to close at 19,883.52, as the yen weakened against the greenback.

It was last off 0.13% at JPY 110.21.

Shares in technology giant Toshiba were lower, after it reported that a claim for damages had been filed against it around what it called ‘accounting issues’.

The company claimed more than JPY 43bn in damages was being sought, which could lead to the company delaying its annual report.

Toshiba’s shares were off 3.95%, with investors appearing to brush off the relatively positive news that South Korean chipmaker SK Hynix was back in the bidding for its valuable semiconductor division.

On the mainland, the Shanghai Composite was down 0.74% at 3,130.44, while the smaller, tech-heavy Shenzhen Composite closed off 0.38% at 1,852.79.

Fresh data released by Beijing during the day showed both factory output and retail sales in China beat expectations for May, growing by 6.5% and 10.7% respectively, while fixed asset investment fell short of forecasts at 8.6% growth.

South Korea’s Kospi lost 0.09% to 2,372.64, while Hong Kong’s Hang Seng Index bucked the regional trend to finish 0.09% higher at 25,875.90.

Trader eyes were fixed firmly stateside as the Asian markets went to bed, ahead of the announcement from the Federal Open Market Committee on its latest monetary policy decision.

The markets held a broad consensus that the Fed would hike interest rates, although investors were hungry for finer details on the central bank’s plans to reduce its mammoth balance sheet.

Oil prices were lower during Asian trading, after estimates from the American Petroleum Institute suggested US stockpiles had risen, rather than the expected fall.

Official Energy Information Administration data was due during the Wednesday session in the US.

Brent crude was last down 0.85% at $48.31 per barrel, while West Texas Intermediate fell 1% to $46.

The antipodean markets also bucked the trend, with Australia’s S&P/ASX 200 adding 1.06% to 5,833.90, while New Zealand’s S&P/NZX 50 was up 0.6% to 7,483.99.

That country’s current account deficit widened in the first quarter to NZD 8.13bn from NZD 7.28bn year-on-year, according to fresh data on Wednesday.

Both of the down under dollars were stronger on the greenback, with the Aussie advancing 0.62% to AUD 1.3186 and the Kiwi last ahead 0.43% at NZD 1.3791.