ASIA STOCKS closed mixed ahead of Fed

Chinese and South Korean stocks fell Wednesday on caution ahead of the Federal Reserve’s monetary-policy decision later in the day, while Japanese shares rallied on a weakened yen and strong overnight gains on Wall Street.

The Nikkei Stock Average outperformed regional markets by a wide margin, finishing the morning trading session 1.3% higher at 13,169.97.

Australia’s S&P/ASX 200 gained 0.4%, and Taiwan’s Taiex added 0.2%.

On the downside, the Shanghai Composite fell 1.5%, Hong Kong’s Hang Seng Index dropped 0.8%, and South Korea’s Kospi also eased 0.8%.

Traders said the FOMC decision and Fed Chairman Ben Bernanke’s press conference later Wednesday will likely remove a key source of uncertainty that has affected markets of late in terms of how long the central bank will maintain its $85 billion a month in bond purchases.

In Japan, shares of Kawasaki Kisen Kaisha Ltd. soared 9%, JFE Holdings Inc. climbed 4.5%, and Sumitomo Mitsui Financial Group Inc. added 4.1%.

Canon climbed 1.7%, and Nikon gained 1.5%.

Losses were spread across sectors in Hong Kong, with shares of China Coal Energy Co. falling 3%, China Construction Corp. dropping 1.6%, and telecom China Unicom Hong Kong Ltd. shedding 2.3%.

Financial stocks were mostly lower in Shanghai, meanwhile. Shares of China Citic Bank Corp. dropped 2%, China Life Insurance Co. fell 1.5%, and Citic Securities Co. retreated 1.6%.

Gold miners fell across the region after the precious metal’s futures suffered a sharp price decline in the U.S. amid uncertainty related to the Fed’s monetary stimulus.

Newcrest Mining Ltd. shed 0.5% in Sydney, Zhaojin Mining Industry Co. fell 2.9% in Hong Kong, and Zijin Mining Group Co. lost 2.4% in Shanghai.

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