Asia report: Stocks fall ahead of US Fed decision

Stocks were weaker across the Asia-Pacific region on Wednesday, as investors closed their wallets ahead of the US Federal Reserve’s interest rate decision later in the global day.

In Japan, the Nikkei 225 was down 1.36% at 27,313.13, as the yen weakened 0.1% against the dollar to last trade at JPY 143.90/

Fashion firm Fast Retailing was up 0.13%, while automation specialist Fanuc slipped 0.16% and technology conglomerate SoftBank Group lost 1.16%.

The broader Topix index was off 1.36% by the end of trading in Tokyo, settling at 1,920.80.

On the mainland, the Shanghai Composite slipped 0.17% to 3,117.80, and the technology-heavy Shenzhen Component was off 0.67% at 11,208.51.

South Korea’s Kospi slid 0.87% to 2,347.21, while the Hang Seng Index in Hong Kong was 1.769% lower at 18,444.62.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics losing 0.9%, while SK Hynix closed flat.

Fresh data out of Korea showed 20-day exports falling 8.7% year-on-year in September, having grown 3.9% in August.

“Preliminary trade data for Korea suggest global demand remained weak in September, with a 7.4% month-on-month drop, seasonally adjusted, from -2.5% in August, alongside the sharp year-on-year decline,” said Craig Botham at Pantheon Macroeconomics.

“The headline number, however, was depressed by a loss of working days thanks to the Chuseok holidays.

“The full-month numbers should be better, because the Chuseok holidays fell later in September 2021, improving the base effect for the full-month comparison, but we still expect to see a slowdown, which should continue into the fourth quarter.”

Oil prices were higher at the end of the Asian day, with Brent crude futures last up 2.35% on ICE at $92.75 per barrel, and the NYMEX quote for West Texas Intermediate ahead 2.47% at $86.01.

Prices for the thick black stuff climbed after Russian president Vladimir Putin announced a partial military mobilisation of his country’s population amid the ongoing invasion of Ukraine.

In Australia, the S&P/ASX 200 was 1.56% weaker at 6,700.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.62% to 11,498.95.

The down under dollars were a mixed picture against the greenback, with the Aussie last 0.17% weaker at AUD 1.4975, while the Kiwi strengthened 0.04% to NZD 1.6959.

Reporting by Josh White at Sharecast.com.