Asian shares mixed as investors look ahead to Federal Reserve meeting

Investing.com - Asian shares were mixed on Tuesday in anticipation of U.S. Federal Reserve announcements that could provide clues on its interest rate policy.

A two-day meeting by the U.S. central bank begins later Tuesday, putting investors off making big trades, including on Wall Street where stocks finished little changed Monday.

The Nikkei 225 fell 0.8% as the yen weakened despite Japan's September preliminary retail sales surging 2.3%, well above a forecast of a 0.6% gain on year, posting a third straight year-on-year rise and beating a 1.2% increase in August.

But stocks in Hong Kong and Shanghai rebounded Tuesday with gains of 0.5% and 0.9%, respectively. They had lost ground Monday because of the delay in a trading program linking the two markets that had been slated to launch before the end of October. There is no indication when the connection will start, Hong Kong's exchange chief said Sunday.

Korea's Kospi and Australia's S&P/ASX 200 were both down 0.4%.

Overnight, U.S. stocks drifted lower in listless trading as investors bought and sold equities betting on winners and loser from falling oil prices, while fears that an Ebola outbreak in the U.S. was still possible pressuring prices lower as well.

The Dow 30 rose 0.07%, the S&P 500 index fell 0.15%, while the NASDAQ Composite index rose 0.05%.

Oil prices dropped though they came off earlier lows after Goldman Sachs Group Inc (NYSE:GS) cut its oil price forecast for WTI in the first quarter of next year by $15 to $75 a barrel.

The bank expects Brent prices to average $85 a barrel in the first three months of 2015, down from a previous estimate of $100.

Goldman analysts expect WTI to fall as low as $70 a barrel and Brent to $80 in the second quarter of 2015, when it expects oversupply to be most pronounced.

OPEC countries have hinted recently they may leave output quotes unchanged and have stressed the need to adapt to lower prices.

OPEC will hold its next meeting on Nov. 27, but investors bought and sold stocks ahead of time on concerns energy companies may see less revenue while others may see energy costs fall.

Soft numbers out of the housing sector watered down U.S. equities.

The National Association of Realtors reported earlier its pending home sales index rose by 0.3% last month, disappointing expectations for a 0.5% gain. Pending home sales in August fell by 1%.

Year-on-year, pending home sales rose 1.0% in September, missing expectations for a 2.2% reading following a 4.1% decline in August.

Moderating price growth and sustained inventory levels are keeping conditions favorable for buyers.

“Housing supply for existing homes was up in September 6% from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year,” said Lawrence Yun, the association's chief economist.

The numbers clouded expectations as to when the Federal Reserve may hike benchmark interest rates.

While the U.S. central bank is seen closing its monthly bond-buying stimulus program likely at a policy meeting ending Wednesday, spotty U.S. data have made it unclear when rate hikes might begin in 2015, leaving stock investors unsure as to the pace of U.S. recovery.

Ebola fears kept investors on the sidelines as well.

The state of New Jersey forced a quarantine on a nurse working with Doctors Without Borders who recently returned to the U.S., and while she was later released, concerns of civil rights issues surrounding the case unnerved a handful of investors.

Also, a five-year-old boy in New York City recently in from the West African nation of Guinea was reportedly undergoing testing for the deadly virus.

On Tuesday, the U.S. is to release data on durable goods orders and a report by the Conference Board on consumer confidence.

Stocks will also move on earnings this week.