Asia: Stocks mostly lower ahead of Fed's interest rate decision

Asian stocks closed mostly lower on Monday on market jitters ahead of the Federal Reserve’s interest rate decision.

Japan’s Nikkei 225 dropped 1.81%, Hong Kong’s Hang Seng index fell 0.72% while the Shanghai composite rose 2.52%.

The Fed is widely expected to raise interest rates for the first time in nearly a decade on Wednesday by 25 basis points.

“This time last year we were convinced that the Fed wouldn't raise rates in 2015. We'll it looks like we'll be proved 15 days wrong,” Deutsche Bank analysts said.

“However with all that's going on in the world and with global nominal growth so low, it's hard for us to imagine they'll get very far in their hiking cycle.”

In China, data over the weekend came in better than expected.

Chinese industrial production rose 6.2% in November from a year earlier, compared to the previous month’s 5.6% increase and expectations for a 5.7% gain, the National Bureau of Statistics reveal.

Retail sales in the world’s second largest economy jumped 11.2% in November, beating the 11.1% forecast and following a 11% rise in October.

“Chinese data over the weekend generally supported the picture of a moderate recovery in the industrial sector fuelled by higher credit growth and a slight improvement in exports,” according to Danske Bank.

“While encouraging, we still look for more rate cuts from PBoC to ease the debt burden of Chinese companies.”

Meanwhile, oil prices declined for a seventh straight session after the International Energy Agency forecast that the global supply glut was likely worsen next year dragged on prices.

Brent crude fell 1.14% to $37.50 per barrel and West Texas dipped 0.70% to $35.37 per barrel at 0956 GMT.

Among companies, five mainland-listed units of China’s Fosun Group plunged despite its billionaire chairman Guo Guangchang making an appearance at the company’s annual meeting in Shanghai after being reported as missing. The company later revealed he was assisting authorities with a probe into Guo's personal affairs.

Hong Kong-listed publishing and property investment company SCMP Group jumped after saying that Alibaba Group Holding will pay 2.06bn Hong Kong dollars (£175m) for the company’s media assets including its flagship South China Morning Post newspaper.

In currencies, China’s yuan reached 6.4665 per dollar, down 0.3% and its weakest level since 2011 after the People’s Bank of China lowered its guidance on the currency. The Japanese yen weakened by 0.07% to $0.0082.