Asian markets extending their losses were trading mostly in red on Wednesday morning, as the Federal Reserve weighs the case for a US interest-rate increase at a time when central bankers in Europe and Japan are questioning the benefits of further stimulus. Both the Fed and the Bank of Japan will hold policy reviews next week. The dollar has strengthened and sell-off in oil and bond markets deepened, weighing down the sentiments in the region. The Chinese market was in red after a batch of upbeat data diminished the likelihood for additional PBOC stimulus, while the losses in Japanese market were led by banks, on reports that the BOJ is considering delving deeper into negative interest rates. South Korean markets are closed for a national holiday.
All the indices in the region barring Hang Seng which was up by 18.62 points or 0.08% to 23,234.38, were trading in red.
Jakarta Composite was down by 82.07 points or 1.57% to 5,133.50; Nikkei 225 declined by 47.85 points or 0.29% to 16,681.19, Shanghai Composite was lower by 17.71 points or 0.59% to 3,005.80, Taiwan Weighted decreased by 16.93 points or 0.19% to 8,923.90 and FTSE Bursa Malaysia KLCI declined by 15.5 points or 0.92% to 1,661.68.