(Sharecast News) - Asia-Pacific equities ended mixed on Wednesday as investors assessed China's latest inflation figures and awaited the US Federal Reserve's final interest rate decision of the year.
Markets broadly expect the Fed to trim its benchmark lending rate by another 0.25 percentage points, following reductions in September and October, adding to caution across the region.
Patrick Munnelly at TickMill noted that "Wall Street remained relatively quiet as traders held back from making bold moves ahead of the Federal Reserve's final interest-rate decision of 2025, set to be announced in less than 24 hours.
"For now, all eyes remain on the central bank's rate move and its outlook for 2026, which will likely shape market sentiment in the days ahead."
His remarks underscored that a subdued tone in US markets has filtered into Asian trading.
Tokyo benchmark in the red
Japan's Nikkei 225 slipped 0.1% to 50,602.80, weighed down by declines in Shionogi & Co and Lasertec Corporation, which fell 4.65% and 4.22%, respectively.
Ajinomoto Co dropped 3.51%, despite Morgan Stanley upgrading the stock from 'equalweight' to 'overweight' and raising its price target to JPY 4,400.00 from JPY 3,800.00.
The bank cited Ajinomoto's expanded market capitalisation, now around JPY 3.5trn compared with JPY 1trn in 2020, and its longer-term prospects in areas such as semiconductors, biotech and overseas seasonings.
The brokerage attributed recent profit weakness to one-off factors and said the company remains positioned as a core driver of Japan's food industry.
The broader Topix index edged up 0.12% to 3,389.02.
Munnelly observed that "Japan's markets also saw declines," adding that broader sentiment across the region remains constrained by the prospect of a potentially hawkish tone from the Fed.
Chinese stocks down as consumer inflation accelerates
In China, the Shanghai Composite dipped 0.23% to 3,900.50, pressured by sharp losses in Dawning Information Industry Co, Guangdong Champion Asia Electronics and Hengtong Logistics, down 10%, 9.98% and 9.83% respectively.
Hygon Information Technology scrapped plans to merge with Dawning, adding to sentiment woes.
The Shenzhen Component gained 0.29% to 13,316.42.
China's consumer prices rose 0.7% year on year, their highest level since February 2023, matching forecasts and accelerating from a 0.2% increase in October.
Producer prices fell 2.2%, extending the factory-gate deflation streak into a fourth year and exceeding expectations of a 2% decline.
Munnelly said that "Asian markets remained steady as investors also await clues on the Federal Reserve's next move regarding interest rates in its final decision of the year.
"Meanwhile, Chinese stocks took a hit after a government report revealed a rise in inflation for November, dimming hopes for potential rate cuts."
Hong Kong's Hang Seng Index climbed 0.42% to 25,540.78, buoyed by WH Group, Haidilao International Holding and CSPC Pharmaceutical Group, which advanced 5.01%, 3.45% and 3.19%, respectively.
CSPC received US regulatory approval to begin clinical trials for its monoclonal antibody JMT206, designed for weight management in obese or overweight individuals, marking a step forward in its push into obesity treatments.
South Korea's Kospi slipped 0.21% to 4,135.00.
Kolon Mobility Group plunged 16.42% ahead of its delisting on 7 January, as part of a full takeover by parent company Kolon.
Hyundai Pharm and Samsung Pharm fell 12.21% and 11.23%, respectively.
Government data showed the country's unemployment rate held steady at 2.2% in November, with both the employed population and labour force participation increasing year on year.
Sydney, Wellington bourses in the red
Australia's S&P/ASX 200 edged down 0.08% to 8,579.40, led lower by Reliance Worldwide Corporation, Iluka Resources and Pro Medicus, which fell 5.06%, 4.58% and 4.06%, respectively.
New Zealand's S&P/NZX 50 declined 0.62% to 13,371.06, pressured by Fletcher Building, Sky Network Television and Ryman Healthcare, down 3.24%, 2.9% and 2.09%.
Ryman's shares were in focus after CEO Naomi Margaret James acquired 86,977 shares for nearly NZD 250,000, lifting her stake to 264,477.
Munnelly noted that "Australian bonds extended their slide following the central bank's hawkish stance earlier in the week," adding that metals trading also reflected shifting expectations around US monetary policy, as "silver continued its upward trajectory, hitting new highs ... jumping 1.3% to a record-breaking $61.4797 per ounce."
Dollar slips against regional peers, oil prices rise
Currency moves were muted, with the dollar slipping 0.09% against the yen to trade at JPY 156.74, as it lost 0.05% against the Aussie to AUD 1.5048 and also slipped 0.05% on the Kiwi to change hands at NZD 1.7290.
Oil prices rose modestly, with Brent crude futures last up 0.55% on ICE at $62.28 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.64% to $58.62 ahead of the Fed decision.
Reporting by Josh White for Sharecast.com.
13.52 (0.14%)
78.15
0.00