KOSPI Leads Asian Indices Green Ahead of Fed Decision – Nikkei Ends Red

Asian equities largely rose as investors awaited the Federal Reserve's final interest rate decision of the year, reflecting cautious optimism across the region.

South Korea's Kospi led gains with a 1.12% rise to 2,484.43. China's major indexes showed positive movements as well, with the Shanghai Composite Index rising by 0.62% to 3,382.21. Meanwhile, Hong Kong's Hang Seng Index saw an increase of 0.83%, reaching 19,864.55.

In Japan, the Nikkei 225 index had went against the upward trend, ending the day down by 0.72% to settle at 39,081. This performance occurred despite Japan's positive trade data, which showed a 3.8% year-over-year increase in exports in November while imports decreased by 3.8%. The Japanese yen weakened ahead of the upcoming Bank of Japan meeting, where the current benchmark interest rate is anticipated to remain unchanged.

In corporate news, Nissan's shares were temporarily halted after a significant 22% surge amid merger speculation with Honda. Although Honda's shares fell by up to 3% during this period, both companies clarified that they are exploring closer collaboration, confirming ongoing talks but denying any final decisions. Both companies, along with Mitsubishi, have been cooperating on sharing electric vehicle components and developing autonomous driving technologies since August.

With the Federal Reserve due to announce it's rate decision today, markets are expecting to see a 0.25 point rate cut. Markets are more interested in the commentary that surrounds the meeting, and the guidance given for upcoming intentions.