Asia report: Markets mixed as investors eye up Fed

Markets in Asia were mixed on Tuesday, as investors kept their wallets firmly shut ahead of a widely anticipated Federal interest rate decision later this week.

Japan’s Nikkei 225 was 0.5% higher by the close, at 19,250.52, having spent much of the day in a holding pattern, bobbing above and below the line.

One of Apple’s iPhone screen suppliers, Japan Display, soared 12.19% after reports emerged that it raised its stake in Joled to more than 50% from 15%.

Joled manufactures organic light-emitting diode (OLED) displays, and resulted from a merger of Panasonic and Sony’s former OLED divisions.

The yen was last 0.32% weaker against the greenback at JPY 115.39 per $1.

On the mainland, the Shanghai Composite eked out a 0.08% gain to 3,155.36, while the Shenzhen Composite lost 0.33% to settle at 1,975.87.

Chinese markets started the week with some more serious losses, ending more than 2% lower on Monday.

“[The] Fed rate hike decision ... is causing temporary risk-off sentiment in China and Hong Kong markets,” noted CMC Markets market analyst Margaret Yang.

Investors were also no doubt wooed by fresh retail sales data, which showed a 10.8% uptick in November, ahead of the 10.1% increase picked by a Reuters poll of economists.

Factory output for the month also beat expectations, ahead 6.2% compared to the 6.1% anticipated, and private investment growth was up 3.1%, compared to 2.9% in the October year-to-date reading.

South Korea’s Kospi was up 0.43% at 2,035.98, while the Hang Seng Index in Hong Kong added 0.06% to 22,446.70.

The special administrative region’s property sector was under pressure, with China Vanke down 1.95%, CK Property losing 0.19% and Henderson Land almost flat.

It came after Hong Kong regulators introduced a stamp duty of 15% on all residential property in a bid to cool the housing market, with analysts concerned that could put another spanner in the region’s residential property works.

“The pace of [the] Federal Reserve's rate hikes may accelerate amid a post-Trump world given Trump's fiscal stimulus,” added OCBC Bank.

“This will also translate into higher borrowing costs in HK, which as a result will further curb the demand in the property market.”

Back in Seoul, investors were still watching the presidential scandal unfold after the impeachment of President Park Geun-hye last week, following allegations of cash-for-influence deals.

Prime Minister Hwang Kyo-ahn has stepped into the presidential shoes for the meantime, while a superior court looks into the legality and ramifications of the impeachment.

Oil prices were still climbing, with Brent crude last up 0.7% at $56.08 per barrel and West Texas Intermediate 0.58% higher at $53.14.

Australia’s S&P/ASX 200 finished 0.32% lower at 5,545.00, with the weighty financials subindex losing 0.61% and the gold sector off 1%.

In New Zealand, the S&P/NZX 50 dropped 0.4% to settle at 6,850.20, led lower by rural-focused financial provider Heartland Bank, and aged care property developer Ryman Healthcare, down 2.2%.

The down under dollars were mixed, with the Aussie last 0.12% weaker at AUD 1.3357 against the greenback, while the Kiwi was 0.04% stronger at NZD 1.3903 per $1.