Asia: Stocks higher ahead of Fed meeting, Japan declines on disappointing data

Asian stocks were higher on Wednesday except in Japan following growing caution ahead of of the Federal Reserve meeting and amid ongoing concerns over Greece.

Concerns about a potential "Grexit" have been escalating, with Greek Prime Minister Alexis Tsipras launching an attack on the IMF in particular, saying the Fund bears “criminal responsibility” for his country’s financial problems.

Michael Hewson, senior market analyst at CMC Markets, said a solution looks "as far away as ever, with even German Chancellor Angela Merkel admitting that the talks are stuck".

Japan's Nikkei 225 closed down 0.19% as disappointing exports and imports data worried investors.

According to the country's Ministry of Finance, imports contracted for the fifth straight month by 8.7% in April, missing forecasts of a 7.5% decline. Exports rose by 2.4%, which was down from the previous' month reading of 8% and against expectations of 3.5%.

On the bright side, merchandise trade balance came better than expected at ¥-216.0bn in April. Forecasts have predicted a reading of ¥-226bn.

In company news, Japanese retailer Muji jumped 6.75% after announcing its plans to open a joint venture with Reliance Brands in India. The brand is expected to arrive to the Indian market during the first quarter of 2016.

Chinese stocks reversed earlier losses after starting the week on the red, with investors showing concerns over new rules on margin financing. Securities regulators plan to cap the companies at four times a brokerage's net capital.

The Shanghai composite index rose 1.65% reversing earlier losses, while Hong Kong's Hang Seng gained 0.71%.

Lawmakers have started a debate in Hong Kong regarding an electoral reform proposal which would allow its leader to be chosen by voters in direct elections. The issue led to massive protests in the regionme s last year, and activist groups expect 100,000 protesters to show up on Wednesday.

Elsewhere in Australia, the ASX index rose 1.08% thanks to the rebound in China.

The gains were despite a decline in the Westpac leading index to -0.1% in May.

Supermarket Woolworths finished down 0.1% after rising 2% following news that its chief executive Grant O'Brien has resigned from his role. The group launched a strategic plan to grow the business, by cutting costs and improving customer service.

“The recent performance has been disappointing and below expectations. I believe it is in the best interests of the company for new leadership to see these plans to fruition,” O'Brien said.