(MENAFN- AFP) Asian markets mostly rose Wednesday, with Hong Kong and Shanghai boosted by reports that China's central bank had pumped $81 billion into the country's five biggest lenders, while traders also awaited a US Federal Reserve policy decision.
A rally on Wall Street increased buying incentives, with US shares helped by the China report as well as a feeling that the Fed will come up short of announcing a significant shift in its monetary policy after its meeting.
Shanghai ended 0.49 percent, or 11.34 points, higher at 2,307.89, while in late afternoon trade Hong Kong was up 0.97 percent and Singapore gained 0.57 percent. Seoul jumped 0.96, or 19.69 points, to close at 2,062.61.
However, Tokyo gave up early gains to finish 0.14 percent lower, dipping 22.86 points to 15,888.67, while Sydney closed down 0.70 percent, or 38.1 points, at 5,407.3.
A report on web portal Sina said the People's Bank of China would inject 500 billion yuan ($81 billion) into the five top state-owned banks, with a view to boosting lending to businesses.
The move is a major stimulus injection following a string of weak data - including on trade and industrial output - that has raised questions about the state of the world's number two economy and key driver of regional and global growth.
The injection, a three-month low-interest rate loan, is similar to a 0.5 percentage point cut to the ratio of cash China's entire banking system must keep in reserve, according to Dow Jones Newswires.
"Given policymakers have shown a willingness to loosen in the face of weaker data, we believe growth will rebound in the coming months," said a report by Goldman Sachs.
The news boosted US shares, with the Dow up 0.59 percent, the S&P 500 gaining 0.75 percent and the Nasdaq also adding 0.75 percent.
Tuesday's pick-up in New York was helped by receding expectations the Fed will adopt a more hawkish tone at Wednesday's meeting.
- Focus turns to Fed meeting -
Investors globally have been pulling their cash off the table recently on speculation the bank will bring forward its timetable for hiking interest rates as the economy picks up speed.
The Fed has previously said it would keep interest rates low for a "considerable time" after ending its massive stimulus programme.
An increase could hit Asian equities and currencies by making them vulnerable to a sell-off, as the incentive for investors to seek higher yields in regional markets is reduced.
However, there are still concerns about the US economy among many investors, with some suggesting the bank will stick to its cautious approach.
In foreign exchange trade the dollar was at 107.19 yen in Asia, compared with 107.15 yen in New York Tuesday afternoon. The euro bought $1.2954 and 138.87 yen against $1.2957 and 138.85 yen.
The pound was moving narrowly against the dollar a day before Scotland's knife-edge independence vote, which could lead to the break-up of the United Kingdom and hammer its economy.
It edged up to $1.6290 from $1.6268, helped by the Fed speculation.
On oil markets, US benchmark West Texas Intermediate (WTI) for October delivery fell 12 cents to $94.76 while Brent crude for November eased eight cents to $98.97 in afternoon trade. WTI jumped $1.96 on Tuesday while Brent gained $1.17.
Gold was at $1,238.54 an ounce, against $1,241.18 an ounce late Monday.
In other markets:
- Taipei rose 0.68 percent, or 61.77 points, to 9,195.17.
Taiwan Semiconductor Manufacturing Co. advanced 1.63 percent to Tw$124.5 while Hon Hai was 1.51 percent higher at Tw$101.0.
- Wellington shed 0.91 percent, or 47.45 points, to 5,142.34.
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