Asia Markets

Asia stocks mixed before Fed meeting; Iraq in focus

Asian stock markets were mixed on Wednesday as investors looked ahead to the Federal Reserve's policy decision.

Wall Street rose for a third session as higher inflation data helped offset concerns over Iraq. May's consumer price index jumped by a larger-than-expected 0.4 percent, with the report coming as the Federal Reserve kicked off its two-day policy review with a decision due later in the day.

"This [inflation data] should come as a relief to the Federal Reserve Committee as a pick-up in pricing power reflects a stronger economy. However, it may not be enough to prompt a better economic forecast later tonight judging from the IMF's forecast earlier this week, and the unexpected economic contraction in Q1," said Desmond Chua, market analyst at CMC Markets.

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Meanwhile, Brent crude was steady above $113 a barrel after fighting in the Iraqi city of Baquba, located to the northeast of Baghdad, shut down the country's biggest oil refinery on Tuesday.


Nikkei up 1%

Japan's benchmark index finished at a one-and-a-half week high, up for a second straight day, as a weaker currency offset disappointing May trade data, which showed exports fell 2.7 percent from a year earlier, down for the first time in 15 months while imports fell 3.6 percent on year.

Japan tax hike to blame for weak trade data?
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Japan tax hike to blame for weak trade data?

The yen fell to a one-week low at 102.25 per dollar, which boosted exporters across the board. Panasonic rose over 3 percent while Nintendo and Fanuc both ended more than 2 percent higher.

Fast Retailing added 1 percent after saying it plans to step up expansion of its fast-fashion GU brand overseas.

China shares mixed

The mainland's benchmark Shanghai Composite index eased 0.6 percent to a one-week low, extending losses after closing down 1 percent on Tuesday.

Real-estate developers were mixed with Gemdale rallying 3.4 percent and Poly Real Estate down 0.2 percent after data showed new home prices rose 5.6 percent in May from a year earlier, slowing from April's 6.7 percent rise.

Hong Kong stocks rose 0.3 percent, snapping their two-day losing streak. CITIC Resources erased losses to jump over 3 percent after saying that more than 100,000 tons of alumina at Qingdao port was missing.

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Taking a wait-and-see attitude on China: BNP

ASX 0.3% lower

Australian shares finished at their lowest levels since March 28, extending losses into a second day, while the Australian dollar continued to trade at a one-week low.

Iron ore developer Aquila Resources rallied 7 percent after rejecting a takeover offer from Mineral Resources and urging shareholders to accept an offer led by China's Baosteel Resources.

Woodside Petroleum sank 4.5 percent after Royal Dutch Shell sold a 9.5 percent stake to institutional investors at A$41.35 a share.

Kospi slips 0.6%

South Korean shares ended at a more than one-month low, snapping their two-day winning streak, dragged down by 1 percent falls in blue-chips Samsung Electronics, Hyundai Motor and Kia Motors.

Sensex down 1%

Indian stocks resumed their downtrend after snapping two days of losses on Tuesday.