Investors were reluctant to make any bold moves ahead of policy decisions from the Federal Open Market Committee and the BoJ on Wednesday.
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“The Fed will try to maintain a hawkish tone so they can keep the ability to raise rates”, said Roger Bridges, the chief global strategist for interest rates and currencies in Sydney at Nikko Asset Management Co.’s Australian unit, which has about $14 billion in assets.
South Korea’s Kospi added 0.5 percent to 2,025.71.
“The BOJ has a particularly hard job as it appears to be limited in what it can do that will both help it achieve its inflation target, which it is now far from doing, and appease the markets and prevent the yen appreciating once again, making its job even more hard”, said Craig Erlam, senior market analyst at Oanda, in a note. Investors have been cautious this week as central banks in the US and Japan meet to discuss potential changes in interest rates and stimulus measures. Allergan lost 2.1 percent.
FedEx shares rose more than 1 percent in extended trading after the package delivery company reported results.
Allergan’s stock was down 1.81 per cent. DTS (DTSI.O) soared 22.8 per cent at $42.16 after Tessera Tech (TSRA.O) agreed to buy the audio equipment maker for $850 million in cash. Among industrial companies, General Electric rose 29 cents, or 1 percent, to $29.72 and Rockwell Automation climbed $1.52, or 1.3 percent, to $116.46. The Nasdaq composite fell 9.54 points, or 0.2 percent, to 5,235.03. Monthly housing figures can be volatile and housing starts have grown this year, but the report hurt shares of homebuilders.
New residential construction in the US pulled back by much more than expected in the month of August, the Commerce Department revealed in a report on Tuesday. Its stock added $1.7, or 2.6 percent, to $70.09 and Starwood rose $1.92, or 2.6 percent, to $77.01.
Apple shares shed 1.2 percent after registering huge gains last week.
“Analyst Connor Campbell said the gains reflected “.investors gradually feeling more confident that the Federal Reserve will sit on their hands during tomorrow’s meeting”. Producer prices decreased 1.6 percent year-on-year in August, slower than the 2 percent decline seen in July. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, after major US indexes ended a choppy session almost flat.
In the currency market, the US dollar traded in the upper 101 yen-range on Wednesday.
In late-morning trades, the benchmark Nikkei 225 Index is losing 85.62 points or 0.52 percent to 16,406.53, off a low of 16,404.37 earlier.
ENERGY: Benchmark U.S. crude picked up 14 cents to $43.44 a barrel in NY.
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The yield on the benchmark 10-year gilts, which moves inversely to its price, fell 2-1/2 basis points to 0.851 percent, the super-long 40-year bond yield also dipped 2-1/2 basis points to 1.452 percent and the yield on short-term 2-year bond slid 1-1/2 basis points to 0.125 percent by 09:00 GMT.
