Asian Shares Mixed Ahead Of FOMC Minutes

Asian stocks ended mixed on Tuesday, while gold gained on a weaker dollar and softening bond yields amid expectations that the Federal Reserve may be done hiking interest rates.

The dollar languished near its lowest level in two-and-a-half months as investors looked forward to minutes from Federal Reserve’s latest meeting for more clarity on the interest rate outlook.

Oil prices slipped on demand worries after seeing sharp gains in the previous two sessions on optimism that major oil producers could discuss deepening output cuts when they meet later this month.

China’s Shanghai Composite Index finished marginally lower at 3,067.93 after a choppy session. Hong Kong’s Hang Seng Index settled down 0.3 percent at 17,733,89, giving up earlier gains on reports Chinese regulators are drafting a list of 50 real estate developers eligible for a range of funding.

Japanese shares ended slightly lower as shares of automakers fell on a stronger yen. The Nikkei 225 Index edged down 0.1 percent to 33,354.14 after reaching its highest level since 1990 on Monday. The broader Topix Index eased 0.2 percent to close at 2,367.79.

Honda, Toyota, Nissan, Mazda and Mitsubishi Motors tumbled 1-4 percent as the dollar slipped to a fresh milestone low against major currencies.

GS Yuasa slumped 10.8 percent after the battery maker announced plans to raise up to 47.2 billion yen ($315.47 million) through the sale of new shares third-party allotment to Honda Motor. Panel display maker Sharp soared 9.5 percent to top the gainers list.

Seoul stocks rose notably ahead of earnings from Nvidia and other U.S. tech firms this week. The Kospi climbed 0.8 percent to 2,510.42.

Australian markets eked out modest gains after the release of the RBA’s November meeting minutes and comments from Governor Michele Bullock that inflation will be the major challenge for the economy over the next two years.

The benchmark S&P ASX 200 Index rose 0.3 percent to 7,078.20, while the broader All Ordinaries Index ended up 0.3 percent at 7,289.30. Mining heavyweights BHP and Rio Tinto rose 1.4 percent and 1.9 percent, respectively.

Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index dropped 0.4 percent to 11,164.42.

U.S. stocks started a holiday shortened week on a positive note overnight as bond yields slipped after a strong 20-year bond auction and Microsoft announced it has hired Sam Altman to spearhead “a new advanced AI research team.”

The tech-heavy Nasdaq Composite jumped 1.1 percent to reach its best closing level since late July, while the S&P 500 added 0.7 percent and the Dow gained 0.6 percent.

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