Asia report: Markets mixed as traders look to Fed, Dutch polls

Markets in Asia finished mixed on Wednesday, as investors kept their wallets closed ahead of an interest rates decision from the US Federal Reserve, and as political concerns heightened in Europe with Dutch voters heading for the polls.

Japan’s Nikkei 225 was 0.16% lower at 19,577.38, with the yen moving stronger against the greenback.

It was last 0.11% stronger at JPY 114.62 per $1.

Technology firm Toshiba lost 12.3%, after the Tokyo Stock Exchange announced it was putting the company’s shares under supervision.

The exchange wanted to investigate whether Toshiba was meeting delisting criteria, after the group postponed its third quarter earnings.

“Instead of explaining how they would avoid delisting, Toshiba held a presentation focused on longer-term 'Measures to Rebuild Toshiba' and 2019 profit targets,” noted analysts at Jefferies on Tuesday.

On the mainland, the Shanghai Composite ended 0.08% higher at 3,241.94, while the Shenzhen Composite was flat at 2,026.76.

Chinese Premier Li Keqiang told local media that the country needed to try and maintain “healthy” relations with the United States on Wednesday.

Li also highlighted what he said was the current strength of the People’s Republic in the areas of economics, financial markets and foreign policy.

The conference set the tone ahead of scheduled talks between Chinese President Xi Jinping and his US counterpart Donald Trump in April.

South Korea’s Kospi was almost flat, finishing 0.04% lower at 2,133.00, while the Hang Seng Index in Hong Kong was down 0.15% at 23,792.85.

Media reports in Seoul suggested the country was headed to the polls on 9 May to choose a new president, to replace the impeached Park Geun-hye, who left the Blue House at the weekend after being embroiled in a cash-for-influence corruption scandal.

Official data released before the open showed the country’s unemployment rate was at its highest since January 2010, rising to 5% in February from 3.8% in January.

Trader eyes in Asia were firmly fixed on the Federal Reserve during Wednesday's session, with a monetary policy decision due from the central bank late on Wednesday London time.

Market expectations for a 25 basis point rise surged to 93% during the Asian morning, according to the CMC Group’s FedWatch tool.

“A US rate rise is now baked in the market cake,” noted CMC Markets chief market strategist Michael McCarthy.

“The focus will shift to board projections.”

Oil prices were higher during Asian trading, recovering somewhat from a plunge on Tuesday after the OPEC cartel reported an increase in global crude stocks, as well as an unexpected rise in output from Saudi Arabia.

Brent crude was last up 1.78% at $51.84 per barrel, and West Texas Intermediate added 2.01% to $48.70.

In Australia, the S&P/ASX 200 was up 0.26% at 5,774.00, while in New Zealand, the S&P/NZX 50 fell 0.6% to 7,131.30.

The down under dollars were both stronger on the greenback, with the Aussie last advancing 0.36% to AUD 1.3183 and the Kiwi ahead 0.27% at NZD 1.4414 per $1.