By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks fell Wednesday,
weighed by a firmer yen and caution ahead of the Federal Reserve's
policy decision, while Australian shares gained amid expectations
the nation's central bank may cut interest rates further.
Japan's Nikkei Stock Average fell 1.3% to give back a large part
of its 1.5% gain Tuesday, while South Korea's Kospi slipped
0.1%.
Australia's S&P/ASX 200 gained 0.7% in Sydney after Reserve
Bank of Australia Gov. Glenn Stevens Tuesday hinted the central
bank may keep an easing bias. Those remarks helped the index
rebound in the previous session to end flat.
Asia's moves came ahead of the Federal Reserve's monetary-policy
statement due out later in the global day on hopes the Fed might
offer more clues on when it's likely to slow the pace of its
monthly bond purchases -- a key tailwind for global equity
markets.
CMC Markets chief market analyst Ric Spooner said not much has
changed since Fed Chairman Ben Bernanke's congressional testimony
earlier this month, and that it's the strength of economic data
that will likely drive the Fed's policies.
"From here, traders, like the Fed, will be looking to the data
to suggest the timing of the next move," Spooner said.
In Tokyo, several exporters retreated as the U.S. dollar
(USDJPY) eased slightly to Yen98 after trading around Yen98.20 at
the Tokyo market close on Tuesday. Fast Retailing Co. (FRCOY) slid
3.6%, and Suzuki Motor Corp. (SZKMY) gave up 2.5%, among the
decliners.
A slew of Japanese results announced after the market's close on
Tuesday influenced share movements in Wednesday's session.
Softbank Corp. (9984.TO) rose 4.1% after more than doubling its
quarterly profit, and fellow telecommunication firm KDDI Corp.
(9433.TO) spiked 7.7% after also reporting results.
In other earnings-driven moves, Fujitsu Ltd. (FJTSY) fell 3.1%,
Japan Tobacco Inc. (JAPAF) rose 0.7%, and Tokyo Electron Ltd.
(TOELY) rallied 4.7%.
Several power utilities tumbled amid concerns over public and
political resistance to the restart of shuttered nuclear-power
plants. Tokyo Electric Power Co. (TKECY) slid 3.6%, Chubu Electric
Power Co. (9502.TO) lost 3.4%, and Kansai Electric Power Co.
(KAEPY) surrendered 3.1%.
Toyota Motor Corp. (TM) fell 1% amid broader market weakness,
despite a Nikkei newspaper report it plans to manufacture more than
10 million vehicles worldwide this year. The company is scheduled
to report its own results Friday.
In Sydney, banks and other stocks paying high dividends rose,
with AMP Capital chief economist Shane Oliver saying late Tuesday
that the markets had priced in a 91% chance of a rate cut at next
week's RBA meeting, following Gov. Stevens' comments.
Commonwealth Bank of Australia (CBAUY) rose 0.6%, and Australia
& New Zealand Banking Group (ANZBY) added 0.8%.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires