Asian Shares Decline On Weak China Data

(RTTNews) - Asian stocks declined on Wednesday as Chinese manufacturing data disappointed and caution prevailed ahead of the Federal Reserve's interest-rate decision later in the day.

The U.S. central bank is likely to keep rates on hold, but the accompanying policy statement and Fed Chair Jerome Powell's post-meeting press conference may offer clues on how soon the Fed could begin easing rates.

The Australian dollar weakened after surprisingly soft inflation data while Japanese bond yields pushed higher with the yen on signs that the Bank of Japan is getting closer to raising its interest rate for the first time since 2007.

Oil prices traded lower in Asian trade on concerns that slower Chinese growth may weigh on global demand.

Chinese markets fell sharply after an official factory survey showed China's manufacturing sector faced its fourth consecutive month of contraction in January in a sign that all stimulus efforts are failing.

The benchmark Shanghai Composite index tumbled 1.48 percent to 2,788.55 despite two of China's major cities following Guangzhou in easing home-buying restrictions.

Hong Kong's Hang Seng index fell 1.39 percent to 15,485.07, dragged down by property developers and technology stocks.

Japanese shares rose notably as a summary of opinions from the BOJ's January meeting signaled the central bank's intensified focus on initiating its first rate hike.

The Nikkei average closed 0.61 percent higher at 36,286.71 after shaking off an early decline led by chip-related stocks. The broader Topix index climbed 0.96 percent to finish at 2,551.10.

Construction machinery maker Komatsu surged 8.6 percent and imaging company Canon rallied 7.9 percent on optimism for the domestic earnings season.

Toyota Motor advanced 1.4 percent after it emerged as the world's top carmaker for a fourth consecutive year.

Japan's industrial output rose 1.8 percent from the previous month in December while retail sales growth eased from November, separate reports showed earlier in the day.

South Korea's Kospi average ended marginally lower at 2,497.09 after a volatile session.

Chipmakers fell, with Samsung Electronics declining 2.2 percent after reporting an annual 34 percent fall in operating profit for the fourth quarter.

South Korea's industrial production grew 1.1 percent in December 2023 from a year earlier, down from the 2.8 percent growth in November, Statistics Korea said in a report.

Australian markets extended gains for the eighth consecutive session after consumer price inflation fell more than expected to a two-year low in the December quarter, reinforcing views that the central bank would not hike its key interest rate next week.

The benchmark S&P ASX 200 jumped 1.06 percent to 7,680.70, led by financials. The broader All Ordinaries index closed up 0.99 percent at 7,912.80.

Origin Energy soared 2.7 percent after posting a mixed set of numbers for the latest quarter.

Across the Tasman, New Zealand benchmark S&P/NZX 50 index dropped 0.36 percent to 11,872.10.

U.S. stocks ended mixed overnight as investors reacted to a mixed bag of earnings from United Parcel Service and General Motors as well as upbeat readings on job openings and consumer confidence.

The tech-heavy Nasdaq Composite shed 0.8 percent and the S&P 500 finished marginally lower, while the Dow rose 0.4 percent to a new record closing high.