Asian Equities Close Mixed as Investors Observe Oil Price Movements

By Investors Hub

Asian stocks ended mixed on Wednesday as investors monitored oil price movements and looked ahead to the U.S. Federal Reserve’s monetary policy decision later in the day. The Fed is expected to sound a bit more dovish after raising rates by 25 basis points.

China’s Shanghai Composite Index tumbled 27.09 points or 1.1 percent to 2,549.56, while Hong Kong’s Hang Seng Index rose 51.14 points or 0.2 percent to 25,865.39.

Trade remained in focus after U.S. Treasury Secretary Steven Mnuchin said U.S.-China trade talks to expand a tariff truce are planned for January.

Japanese shares fell as trade data disappointed and caution set in ahead of the Bank of Japan’s monetary policy decision on Thursday.

Japan posted a merchandise trade deficit of 737.3 billion yen in November, the Ministry of Finance said. That missed forecasts for a deficit of 630.0 billion yen following the 450.1 billion yen shortfall in October.

Exports were up just 0.1 percent year-over-year, shy of expectations for a gain of 1.1 percent following the 8.2 percent spike in the previous month. Imports were up an annual 12.5 percent versus expectations for an increase of 12.0 percent and down from 19.9 percent a month earlier.

The Nikkei 225 Index fell 127.53 points or 0.6 percent to 20,987.92, while the broader Topix closed 0.4 percent lower at 1,556.15.

SoftBank Group’s mobile unit SoftBank Corp. saw a poor market debut, with shares plunging 15 percent from the IPO price of 1,500 yen announced earlier this month.

Tech stocks ended mixed, with Advantest rallying 2.8 percent, while Tokyo Electron lost 4.4 percent. Oil company Inpex plummeted 7.2 percent and Japan Petroleum tumbled 5 percent.

Australian markets fell slightly amid weakness in the energy sector after U.S. oil prices fell over 7 percent overnight on fears of oversupply. Banks gained ground, helping limit the downside in the broader market.

The benchmark S&P/ASX 200 Index ended down 8.90 points or 0.2 percent at 5,580.60 after falling 1.2 percent on Tuesday. The broader All Ordinaries Index dropped 11.80 points or 0.2 percent to 5,650.

Woodside Petroleum, Santos, Oil Search and Origin Energy slumped 2-6 percent after oil prices dropped further overnight.

Graincorp also slid 1.4 percent. The bulk grain handler said it is providing its suitor Long-Term Asset Partners due diligence after it received an A$2.38 billion all-cash buyout proposal earlier in December.

On the other hand, National Australia Bank rose 0.8 percent. The bank is scrapping its overhauled executive pay structure after more than 80 percent of shareholders voted against it. Rivals ANZ and Commonwealth rose over 1 percent each.

Gold miner Evolution jumped over 4 percent and St Barbara soared 5.2 percent after gold prices extended gains overnight.