Investing.com - Asian shares were mixed on Wednesday as investors looked ahead to the tone of the Federal Reserve statement due later in the day.
The Nikkei 225 edged down 0.17% and the Shanghai Composite fell 0.21%. The S&P/ASX 200 however gained 1.08% and the Hang Seng index was up a scant 0.06%.
Earlier in Asia, Japan said retail sales rose 0.9% year-on-year, far outpacing a 0.5% increase seen, and a third straight increase spurred by higher nominal wages and tourists flocking to the country on a weaker yen.
The New Zealand dollar held onto earlier gains after the central bank governor said it should be weaker consistent with the economy while adding that sharply lower interest rates are not the way to that goal.
Overnight, U.S. stocks rose broadly on Tuesday halting its longest losing streak since January, amid a wave of strong earnings and a rally in Chinese equities which stabilized global markets.
Spurred by a surge in energy stocks, the Dow Jones Industrial Average and NASDAQ Composite Index rose considerably on the session to end a five-day losing streak. The sharp gains in the energy sector also bolstered the S&P 500 Composite Index, which jumped more than 1.2% on the session to finish as the day's overperformer. The Dow gained 189.68 or 1.09% to 17,630.27, erasing all of its losses for the month, while the NASDAQ added 49.43 or 0.98% to close at 5,089.21.
The S&P 500, meanwhile, rose 25.61 or 1.24% to 2,093.25, as all 10 sectors on the index closed in the green. Stocks in the energy sector led, skyrocketing 3% on the session. Basic Materials, Health Care and Industrials stocks also enjoyed strong sessions, closing higher by more than 1.5% on the day.
Overnight, data showed that U.S. consumer confidence deteriorated this month, while markets awaited the conclusion of the Federal Reserve's policy meeting this week.
The Conference Board, a market research group, said its index of consumer confidence fell to 90.9 this month from a downwardly revised 99.8 in June. Economists had forecast a reading of 100.0.
A less optimistic outlook for the labor market, as well as uncertainty and volatility in financial markets prompted by the situation in Greece and China sapped investor sentiment, the report said.
Other reports earlier Tuesday showed that U.S. house price growth stalled in May, while activity in the service sector picked up this month.
Investors were looking ahead to Wednesday’s Fed statement to see if policymakers would give any indication on the timing of an initial rate hike.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter following an unusually harsh winter.