Asian Shares Mostly Lower Ahead Of BOJ Policy Decision

(RTTNews) - Asian shares ended mostly lower on Monday after New York Fed chief Williams said that a March cut seems 'premature', tempering market speculation about imminent rate cuts. Investors also sought direction from this week's Bank of Japan's interest-rate decision and a key U.S. inflation reading.

Chinese and Hong Kong markets fell, with property developers succumbing to selling pressure after China South City Holdings warned it can't pay interest due Wednesday.

China's Shanghai Composite index dropped 0.40 percent to 2,930.80 before Wednesday's loan prime rate announcement. Hong Kong's Hang Seng index fell 0.97 percent to 16,629.23.

Japanese shares fell notably while the yen struggled for direction as the Bank of Japan (BOJ) began a 2-day meeting amid speculation it could change its forward guidance on interest rates or provide signals on policy change.

Most economists expect the BOJ to ditch negative interest rates by the end of next year. Upcoming inflation data on Friday also remained on investors' radar.

The Nikkei average ended 0.64 percent lower at 32,758.98 while the broader Topix index slipped 0.66 percent to 2,316.86. Consumer-related stocks and financials led losses, with Sony and Sumitomo Mitsui Financial falling around 2 percent each.

Seoul stocks ended a choppy session slightly higher, with the Kospi average closing up 0.13 percent at 2,566.86. Shipping stocks rose on expectations that disruptions to Red Sea routes due to militant attacks will push up freight rates.

Australian markets closed lower to snap a six-session winning streak. The benchmark S&P ASX 200 slid 0.22 percent to 7,426.40, dragged down by financials and gold miners. The broader All Ordinaries index settled 0.16 percent lower at 7,649.60.

Pension company Link Administration Holdings soared 27 percent following a takeover offer by Japan's Mitsubishi UFJ Financial Group.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index edged up 0.13 percent to 11,564.98 after upbeat consumer confidence and service sector activity readings.

U.S. stocks ended mixed on Friday but logged seventh week of gains after a deluge of central bank meetings and economic data releases.

Investors tempered dovish Fed bets after New York Fed President John Williams pushed back against market bets of multiple rate cuts next year, reiterating the U.S. central bank remains focused on bringing inflation down to its 2 percent target.

Economic data signaled an uptick in U.S. business activity in December and mixed fortunes for the manufacturing sector.

The Dow edged up 0.2 percent to touch another new record closing high and the tech-heavy Nasdaq Composite added 0.4 percent to hit a nearly two-year closing high while the S&P 500 ended flat with a negative bias.