Asian markets were mixed Wednesday, with the Japanese market tracking a positive lead from U.S. stocks, while weaker commodity prices weighed on the Australian market.
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Japan's Nikkei rose 2.0%, tracking Tuesday's gains in U.S. stocks which saw both the Dow Jones Industrial Average and the Standard & Poor's 500 mark fresh record highs.
Investors eagerly awaited the outcome of the Bank of Japan's two-day policy meeting that started Wednesday, the first meeting with new Governor Haruhiko Kuroda at the helm, to see whether or not fresh easing measures would meet market expectations.
"While some easing steps like extending maturities of the bonds the Bank of Japan will buy have been factored in, under the leadership of new governor Kuroda the BOJ will undertake any necessary steps until it achieves its 2.0% inflation target. Easing will continue. This upcoming meeting isn't the end of it," said Hiroichi Nishi, general manager of equity division at SMBC Nikko Securities.
"Besides, Japanese Prime Minister Abe's growth strategies are yet to be revealed."
Analysts polled by Dow Jones Newswires expect the central bank will increase its asset purchases�its main weapon against deflation with interest rates near zero�by �15 trillion to �20 trillion, mostly through buying Japanese government bonds.
Fast Retailing rose 10.7% in Tokyo after the firm's Uniqlo unit reported that domestic same-store sales climbed 23.1% on-year in March, rising for the second straight month.
Australia's S&P/ASX 200 dropped 0.6%, as weaker commodity prices weighed on resources stocks. Among metal stocks Newcrest Mining lost 2.9%, Fortescue Metals Group fell 2.6%, and Rio Tinto slipped 2.0%. Among energy stocks Santos dropped 2.4% and Origin Energy skidded 1.9%.
South Korea's Kospi Composite fell 0.5%, weighed by STX Offshore, which dropped by its daily-limit of 15% after asking creditors on Tuesday for financial support, just days after its parent company failed to sell assets to help repay maturing debt.
In China, the Shanghai Composite was recently up 0.1% in light trading before a holiday-extended four-day weekend and as investors remained cautious before the release of key Chinese economic data next week.
A rise in both HSBC's China services purchasing managers' index to a six-month high of 54.3 in March and China's official nonmanufacturing Purchasing Managers' Index to 55.6 in March failed to boost sentiment in China.
Hong Kong's Hang Seng Index fell 0.3%, though Hong Kong listed mainland developers continued to outperform for the second straight session. China Overseas Land rose 0.7% and Sunac China added 4.3%.
"China's outlook remains cloudy, as the end of the National People's Congress (in March) failed to provide clarity on reform measures. At the same time the monetary policy is being tightened and the authorities have stepped up regulations on banks and the property sector," said Alvin Cheung, associate director at Prudential Brokerage.
"About the only good news is from the mostly positive U.S. economic data, which wrestles the uncertainty from China, hence we're moving sideways recently."
In currency markets, the U.S. dollar rose mildly against both the yen and the euro, however trading was cautious before a number of key events including the Bank of Japan and European Central Bank policy meeting outcomes Thursday as well as Friday's nonfarm payrolls data in the U.S.
The dollar was recently at �93.55 compared with �93.43 late Tuesday in New York, while the euro was at $1.2803 compared with $1.2820.
Write to Lillian Ying at lillian.ying@wsj.com
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