Asia report: Markets mixed as region awaits Fed

Japan's Nikkei 225 lost 0.83% to 16,974.45, extending its 0.68% dip on Tuesday. Exporters finished mainly lower, with Honda down 2.19%, Nissan dropping 1.23% and Toyota shedding 0.71%.

Shares in electronics conglomerate Sharp slid 11.84%, after a report was released suggesting Taiwan-based Hon Hai Precision Industry - trading as Foxconn - might delay its takeover of Sharp as it further clarifies the company's financial performance.

It came after February's reports that Sharp had contingent liabilities of around JPY 300bn (£1.87bn), which had not been disclosed to Hon Hai prior to the bid.

The yen maintained its firm grip on the 113 handle against the greenback, after Tuesday's decision from the Bank of Japan to keep interest rates on hold and monetary policy on course. It was last trading 0.36% weaker, at JPY 113.59 per US dollar.

"Slight risk aversion ahead of the FOMC today may continue to keep the [yen] in a straight jacket," said OCBC Bank forex strategist Emmanuel Ng.

South Korea's Kospi finished up 0.25% at 1,974.9, while Hong Kong's Hang Seng Index finished down 0.15% to 20,257.7.

In China, the Shanghai Composite closed up 0.21% at 2,870.48, while the Shenzhen Composite finished down 1.02% to 1,711.47.

Renminbi weakened against the dollar, with the pair at CNY 6.5205 per USD in afternoon trading. The People's Bank of China set the yuan's loose peg higher before trading on Wednesday at 6.5172, from 6.5079 on Tuesday. Trading occurs within 2% either side of the peg.

Down under, Australia's S&P/ASX 200 closed up 0.15% to 5,119 points. Materials were down 0.72%, while energy was up 0.44% and financials were lifted 0.54%.

The Aussie dollar was flat for much of the day, and was last trading 0.01% stronger against the greenback at AUD 1.3407.

Resources shares in Sydney were down, with BHP Billiton losing 1.46% locally, Fortescue Metals down by 4.33% and Rio Tinto losing 0.65% in Australian trading.

Oil prices climbed during Asian trading after finishing the US day down. Brent crude was last up 1.22% to $39.22 per barrel, and West Texas Intermediate was up 1.6% to $36.93.

"Oil will remain a leading commodity, and its movements will govern equity markets in the short term," said IG market strategist Evan Lucas.

New Zealand shares broke their 12-session golden run on Wednesday, with the S&P/NZX 50 falling 0.2% to settle at 6,562.96. Accounting software firm Xero dragged the index down, with the volatile stock losing 3.2%. It had falled 19% this year already.

The Kiwi dollar gained some ground against the greenback after close on Wednesday, and was last ahead by 0.16% at NZD 1.5125 per USD.