Asian stocks finished mixed on Wednesday on speculation whether the U.S. Federal Reserve will maintain its dovish policy stance and following reports of Chinese stimulus.
On Tuesday, Chinese website Sina.com said the People's Bank of China (PBOC) injected $82 billion into the country's five largest banks. Many investors were anticipating some form of stimulus from the central bank following a spate of recent weak economic data.
"If this [report] is confirmed, it means the PBOC is undertaking QE (quantitative easing); it is printing money and giving capital to the banks in the hope they will lend it on. It isn't as aggressive as the Q2 program which saw the PBOC relaxing the reverse ratio. However, it is still a stimulus measure and one that has a broader reach," said Evan Lucas, market strategist at IG, in a note.
Later Wednesday, the Fed ends a two-day policy meeting. Many experts were bracing for more hawkish language, but a shift in expectations occurred overnight after Wall Street Journal journalist Jon Hilsenrath argued that the Fed wouldn't make any major change in its statement.