Asia markets were mixed Wednesday, following a weaker finish on Wall Street overnight as as traders await the US Federal Reserve decision due later in the US and news from the National People's Congress meeting in China.
The US central bank is widely expected to stand pat on policy, but analysts will be closely watching the wording of the Federal Open Market Committee's statement for cues on the direction ahead. That uncertainty is helping to keep markets constrained.
"No one appears to be making bets in front of the Fed, with just a little profit-taking," Mark Matthews, head of research for Asia at Julius Baer, said in a note Wednesday. "For a knee-jerk up, the Fed has to say 'no rate rises for a very long time.' On the other hand, with any inkling of more tightening, the best result is flat. That leaves the risk-reward relatively poor in the short-term."
The Australian S&P/ASX 200 was flat in early trade, with the materials subindex slipping 0.94 percent and the energy subindex down 0.44 percent. Those declines were offset by a 0.53 percent gain in the heavily weighted financial subindex.
Japan's benchmark Nikkei 225 shed 0.47 percent, extending Tuesday's 0.68 percent fall. Across the Korean Strait, the Kospi was up 0.49 percent in early trade.
Japanese exporters were mostly lower, with Toyota shares down 0.18 percent, Honda 1.59 percent lower and Nissan slipping 0.5percent.
Shares of electronics giant Sharp tumbled 9.21 percent after a report said that the Taiwan-based Foxconn may delay its Sharp takeover deal to get further clarity on its financial performance, reported Reuters.
In late February, Reuters had reported that Sharp had contingent liabilities worth around 300 billion yen ($2.66 billion) which had not been disclosed to Foxconn.
In the currency market, the Japanese yen held at the 113 handle against the dollar, after yesterday's Bank of Japan decision to keep interest rates on hold. The dollar/yen pair traded flat at 113.08 as of 8:21 a.m HK/SIN time.
Down Under, the Australian dollar/US dollar pair was flat at 0.746 as of 8:23 a.m. HK/SIN time.
Resource producers were down, with shares of Rio Tinto lower by 1.02 percent, Fortescue falling 1.38 percent and BHP Billiton shedding 2.34 percent.
In the oil space, US crude futures climbed 1.43 percent to $36.86 a barrel, while global benchmark Brent was up 0.88 percent at $39.08 as of 9:45 a.m. HK/SIN time.
Some analysts believe oil prices will continue to sway market sentiment.
"Oil will remain a leading commodity and its movements will govern equity markets in the short term," said Evan Lucas, market strategist from IG, in a morning note.
Overnight in the US, major indexes finished mixed, with only the Dow Jones industrial average higher, rising 0.13 percent. The S&P 500 closed down 0.18 percent and the Nasdaq composite fell 0.45 percent.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
