Asia report: Markets mixed in light pre-Fed trading

Markets in Asia ended mixed on Tuesday, with volumes light as traders kept their wallets shut ahead of monetary policy decisions due on Wednesday from the US Federal Reserve and the Bank of Japan.

In Japan, the Nikkei 225 lost 0.16% to close at 16,492.15, while the broader Topix was up 0.42% at 1,316.97.

The yen clung to its 101 level against the greenback, and was last 0.16% stronger at JPY 101.77.

Embattled airbag manufacturer Takata plummeted 11.58% during the session, after reports emerged suggesting some within the company’s top echelons have been mulling over bankruptcy proceedings.

Takata is embroiled in one of the world’s biggest ever recalls of cars and vehicles over faulty, potentially fatal airbags.

On the mainland, markets were almost flat with the Shanghai Composite down 0.09% at 3,023.30 and the Shenzhen Composite closing at 2,000.06.

Korea’s Kospi closed up 0.49% to 2,025.71, while the Hang Seng Index in Hong Kong finished almost flat, losing 0.08% to 23,530.86.

The relatively modest Tuesday was put down to anticipation ahead of the US and Japan monetary policy decisions by analysts - both of which are due on Wednesday.

“Trading ranges on international markets have narrowed over the past couple of sessions,” said CMC Markets chief market analyst Ric Spooner.

“Markets appear to have arrived at a level that reflects the consensus view of the balance between risk and reward.”

Oil prices were lower during Asian trading on Tuesday, after receiving a boost on Monday thanks to a weaker dollar.

Brent crude was last down 0.48% to $45.73 per barrel, while West Texas Intermediate lost 0.48% too to $43.65.

An informal meeting of the OPEC oil producing cartel is due next week, following several weeks of serious volatility in crude prices and further speculation of a supply freeze deal among the members, though not everyone was sold on that prospect.

“We expect this to be another 'false dawn,' with no change from the Saudi policy of maintaining market share,” said Patrick Dennis of Oxford Economics.

Australia’s S&P/ASX 200 finished 0.17% higher at 5,303.60, with most subindexes climbing, though energy was the odd sector out as it lost 0.93%.

The Sydney bourse was back online for a full session, after a temporary delay was followed by an early closure on Monday as a result of a technical glitch.

New Zealand shares were in the green for a third straight session as investors hunted for bargains amid the carcasses of last week’s big selloff, with the S&P/NZX 50 gaining 0.4% to 7,308.44.

There was no clear theme to the bargain hunting, with manuka honey exporter Comvita, hydroelectricity generator Meridian Energy and airport operator AIAL leading Wellington higher.

The down under dollars crept ever closer to their American counterpart, with the Aussie last ahead 0.24% to AUD 1.3242 and the Kiwi strengthening 0.69% to NZD 1.3617 per $1.