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Asian shares cautious ahead of Fed rate decision Japan shares up on stimulus reports
(about 7 hours later)
Asian shares have opened largely unchanged on Wednesday with investors cautious ahead of the Federal Reserve rate decision due later. Japan's Nikkei share index closed up nearly 2% on reports that the government will launch a 28 trillion yen ($266bn) economic stimulus package.
While the US central bank is expected to keep rates on hold, its statement is expected to give some direction as to when they will rise again. The Nikkei ended the day up 281.78 points, or 1.7%, at 16,664.82.
The Fed last raised interest rates in December, the first change in nearly a decade, and has signalled it could do so twice more this year. However, in China shares were hit by concerns that regulatory changes to some share trading were on the way.
Japan's Nikkei opened 1.1% higher. China's Shanghai Composite index fell by 81.75 points, or 2.7%, to 2,968.41. In Hong Kong, the Hang Seng fell 39.70 points, or 0.2%, to 22,090.03.
However other markets were lacklustre with Australia's ASX 200 share index up just 0.3% and South Korea's benchmark Kospi index flat. In Australia, the ASX 200 share index closed flat at 5,539.69.
Marc Chandler, global head of currency strategy at Brown Brothers Harriman, said he expected an upbeat statement from the Federal Reserve later: South Korea's benchmark Kospi index dipped 0.1% to 2,025.05.
"The nervous Nellies have likely been reassured by both the improvement in the labour market, renewed consumption and the general resilience of the capital markets in light of the UK's referendum.
"Moreover, the markets seem unperturbed by the weakness of the Chinese yuan and China's equity market losses. Last August, and as recently as January, China's markets were a cause of much consternation among investors."