Asian Shares Mixed Before Key Fed Decision

(RTTNews) - Asian stocks turned in a mixed performance on Monday as investors parsed Chinese trade data, navigated deteriorating China-Japan relations and looked ahead to the Federal Reserve's interest-rate decision due on Wednesday.

The Fed is likely to cut interest rates by 25 basis points on Wednesday but the path for 2026 looks more uncertain.

The dollar softened in Asian trade on rate cut expectations and gold traded firm above $4,200 per ounce while oil hovered at two-week highs.

China's Shanghai Composite index surged 0.54 percent to 3,924.08 after the release of trade data.

According to the customs office, China's exports grew 5.9 percent on a yearly basis in November, reversing a 1.1 percent fall in October. Analysts expected shipments to increase 3.8 percent.

Imports posted an annual growth of 1.9 percent after rising 1 percent in the previous month. This was weaker than the expected growth of 2.8 percent, resulting in a trade surplus of around $112 billion in the month.

Hong Kong's Hang Seng index fell 1.23 percent to 25,765.36 as tensions between China and Japan escalated.

Japan accused Chinese fighter jets of aiming radar at its aircraft near Okinawa. China denied the claim and said Japanese jets provoked their navy.

Investors also weighed trade tensions after French President Emmanuel Macron raised the prospect of imposing tariffs on Chinese goods.

Japanese markets ended slightly higher after a choppy session as data showed the Japanese economy shrank more than initially estimated last quarter, primarily due to weak capital spending.

On an annualized basis, GDP declined 2.3 percent in the three months through September - missing expectations for a fall of 2.0 percent following the 2.2 percent gain in the second quarter.

The Nikkei average ended up 0.18 percent at 50,581.94 while the broader Topix index settled 0.65 percent higher at 3,384.31.

Among the top gainers, Fujikura jumped 7 percent and Fuji Electric surged 4.1 percent. Big tech stocks ended mixed amid caution over the durability of this year's AI-driven rally. Startup investor SoftBank Group tumbled 3.3 percent.

Seoul stocks rallied, led by technology shares on growing expectations for robust fourth-quarter earnings. The Kospi average climbed 1.34 percent to 4,154.85. Memory chipmaker Samsung Electronics rose 1 percent and peer SK Hynix soared 6.1 percent.

Australian markets ended marginally lower in cautious trade as the Reserve Bank of Australia kicked off its two-day policy meeting. Investors also waited for cues from local jobs data, due on Thursday.

The benchmark S&P/ASX 200 slid 0.12 percent to 8,624.40, with miners leading losses. The broader All Ordinaries index closed down 0.12 percent at 8,915.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally higher at 13,486.32 after two consecutive sessions of losses.

U.S. stocks eked out modest gains on Friday after the closely watched PCE price index ticked up to 2.8 percent in September from 2.7 percent in August, matching estimates and boosting rate-cut hopes.

Separately, a measure of U.S. consumer confidence rose for the first time in five months as respondents' inflation expectations improved.

The tech-heavy Nasdaq Composite rose 0.3 percent to reach a one-month high and the S&P 500 added 0.2 percent to extend gains for a fourth day running while the narrower Dow edged up by 0.2 percent.