Asia report: Markets mixed as investors look to Fed

In Japan, the Nikkei 225 was down 0.08% at 21,566.85, as the yen strengthened 0.01% against the dollar to last trade at JPY 111.42.

The broader Topix index was 0.21% weaker at 1,610.23.

Tokyo’s blue-chip trio were all ahead, going against the trend, with automation specialist Fanuc up 0.81%, Uniqlo owner Fast Retailing ahead 0.32%, and technology conglomerate SoftBank Group improving 0.41%.

On the mainland, the Shanghai Composite was off 0.18% at 3,090.98, and the smaller, technology-heavy Shenzhen Composite rose 1.08% to 1,688.76.

South Korea’s Kospi lost 0.09% to 2,177.62, while the Hang Seng Index in Hong Kong added 0.19% to 29,466.28.

Investors in the region were looking ahead to the two-day Fed policy meeting during the session, which was due to kick off later in the global day.

Markets have nil expectations for a rate hike, according to CME Group’s 'FedWatch', but investors remained keen for any changes in the central bank’s economic outlook.

At previous meetings, the Federal Reserve indicated its willingness to be patient when it comes to future rate hikes.

Oil prices continued to rise as the region went to bed, with Brent crude last up 0.41% at $67.82 per barrel, and West Texas Intermediate advancing 0.14% to $59.17.

In Australia, the S&P/ASX 200 slipped 0.09% to 6,184.80, as investors reacted to the release of minutes from the Reserve Bank of Australia’s March policy meeting.

The country’s central bank noted global trade tensions, saying they were a continued source of uncertainty for the world’s economy.

“The delay in tariff increases previously scheduled for 1 March had generated some optimism that tensions could ease,” the Reserve Bank said.

“However, the increases in tariffs implemented in 2018 had continued to weigh on trade between the United States and China, and there had been spillover effects on some other economies.”

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.2% at 9,427.27, falling back from a record high close on Monday.

Operational software developer Gentrack was down 4.2%, slipping further as investors expressed concern about the impact a disorderly Brexit would have on the firm.

Gentrack derives around 40% of its sales revenue from the UK.

The down under dollars were a mixed picture against the greenback, with the Aussie last 0.01% weaker at AUD 1.4079, and the Kiwi 0.21% stronger at NZD 1.4562.