Asian stocks unchanged as investors look towards U.S. Federal Reserve meeting

BEIJING - Asian stocks were little changed Wednesday with markets in Japan and Hong Kong closed for a holiday as investors looked ahead to a meeting of U.S. Federal Reserve policymakers.

KEEPING SCORE: The Shanghai Composite Index was unchanged at 3,143.38 while Sydney's S&P-ASX 200 shed 0.6 per cent to 5,917.60. South Korean markets also were closed. Benchmarks in New Zealand, Taiwan and Southeast Asia advanced.

WALL STREET: U.S. stocks gained but reports by automakers that their sales are shrinking offset strong results from industrial companies. Engine maker Cummins sent manufacturers and other industrial companies higher after reporting solid first-quarter earnings. Ford, General Motors and Fiat Chrysler fell after they said April sales declined. The Standard & Poor's 500 index rose 0.1 per cent to 2,391.17. The Dow Jones industrial average added gained 0.2 per cent to 20,949.89. The Nasdaq composite set another record as it picked up 0.1 per cent to 6,095.37.

FED WATCH: Investors looked ahead to a meeting of policymakers of the U.S. Federal Reserve to discuss interest-rate policy. Many investors expect the Fed to freeze the benchmark interest rate this month but are looking to a post-meeting statement for signs of when the next hike might come. The CME Group's FedWatch tool says futures markets indicate a 66 per cent chance of a hike in June.

ANALYST'S TAKE: "Certainly, the poor vehicle sales print can be added to a growing list of below par U.S. data points of late and that will almost certainly be a theme the Federal Reserve will explore," said Chris Weston of IG in a report. "Keep in mind the interest rate markets are pricing a 60 per cent chance of a hike from the Fed in June, so this probability will move depending on the tone of the statement."

AUTO SLOWDOWN: U.S. auto sales fell 4.7 per cent last month, the most pronounced slowdown of the year and a strong indication that 2017 will put an end to seven straight years of growth. Auto executives and analysts, who have been anticipating a slowdown, saw no cause for panic. Many expect sales in the important economic sector to top 17 million for the third straight year, an industry first. Sales have dropped for four straight months, the first time that's happened since the economy ground to a halt in 2009. April sales totalled just over 1.4 million, which translates to an annual sales rate of 16.9 million, far below last year's record of 17.5 million. The April decline brought year-to-date sales down by 2.4 per cent from a year ago.

CURRENCY: The dollar edged up to 112.03 yen from Tuesday's 111.99 yen. The euro gained to $1.0932 from $1.0929.

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