- Honda and Nissan expected to begin merger talks
- 'Draconian' Vietnam internet law heightens free speech fears
- Israeli women mobilise against ultra-Orthodox military exemptions
- Asian markets track Wall St rally as US inflation eases rate worries
- Tens of thousands protest in Serbian capital over fatal train station accident
- Trump vows to 'stop transgender lunacy' as a top priority
- Daniels throws five TDs as Commanders down Eagles, Lions and Vikings win
- 'Who's next?': Misinformation and online threats after US CEO slaying
- Only 12 trucks delivered food, water in North Gaza Governorate since October: Oxfam
- Langers edge Tiger and son Charlie in PNC Championship playoff
- Explosive batsman Jacobs gets New Zealand call-up for Sri Lanka series
- Holders PSG edge through on penalties in French Cup
- Slovak PM Fico on surprise visit to Kremlin to talk gas deliveries
- Daniels throw five TDs as Commanders down Eagles
- Atalanta fight back to take top spot in Serie A, Roma hit five
- Mancini admits regrets over leaving Italy for Saudi Arabia
- Run machine Ayub shines as Pakistan sweep South Africa
- Slovak PM Fico on surprise visit to Kremlin
- Gaza rescuers say Israeli strikes kill 35
- 'Incredible' Liverpool must stay focused: Slot
- Maresca 'absolutely happy' as title-chasing Chelsea drop points in Everton draw
- Salah happy wherever career ends after inspiring Liverpool rout
- Three and easy as Dortmund move into Bundesliga top six
- Liverpool hit Spurs for six, Man Utd embarrassed by Bournemouth
- Netanyahu vows to act with 'force, determination' against Yemen's Huthis
- Mbappe back from 'bottom' as Real Madrid down Sevilla
- Ali hat-trick helps champions Ahly crush Belouizdad
- France kept on tenterhooks over new government
- Salah stars as rampant Liverpool hit Spurs for six
- Syria's new leader says all weapons to come under 'state control'
- 'Sonic 3' zips to top of N.America box office
- Rome's Trevi Fountain reopens to limited crowds
- Mbappe strikes as Real Madrid down Sevilla
- 'Nervous' Man Utd humiliated by Bournemouth
- Pope again condemns 'cruelty' of Israeli strikes on Gaza
- Lonely this Christmas: Vendee skippers in low-key celebrations on high seas
- Troubled Man Utd humiliated by Bournemouth
- 2 US pilots shot down over Red Sea in 'friendly fire' incident: military
- Man Utd embarrassed by Bournemouth, Chelsea held at Everton
- France awaits fourth government of the year
- Germany pledges security inquest into Christmas market attack
- Death toll in Brazil bus crash rises to 41
- Joshua bout only fight left for beaten Fury says promoter Hearn
- Odermatt stays hot to break Swiss World Cup wins record
- Neville says Rashford's career at Man Utd nearing 'inevitable ending'
- Syria's new leader vows not to negatively interfere in Lebanon
- Germany pledges security inquest after Christmas market attack
- Putin vows 'destruction' on Ukraine after Kazan drone attack
- Understated Usyk seeks recognition among boxing legends
- France awaits appointment of new government
Asian markets mixed ahead of Fed news, Nissan soars on merger reports
Asian markets swung Wednesday ahead of the Federal Reserve's much-anticipated policy announcement, while shares in Japanese car titan Nissan soared more than 20 percent after reports said it was in merger talks with rival Honda.
There were few catalysts to drive region-wide activity before the US central bank's interest rate decision, with Wall Street providing a negative lead as profit-takers moved in while economic data was mixed.
The Fed is widely expected to cut borrowing costs for the third successive time when it concludes its gathering later in the day, but the main focus is on its statement, with traders hoping for guidance on its plans for next year.
With inflation coming down but hovering above the two percent target and the labour market still robust, decision-makers have been able to loosen their grip on policy since September amid optimism they can guide the economy to a soft landing.
However, with Donald Trump set to re-enter the White House next month, pledging tax cuts, deregulation and tariffs on imports from China, there are fears that prices could be reignited, forcing the Fed to re-evaluate its rates timetable.
"We are experiencing a whirlwind of change and uncertainty that profoundly affects global economies," said Stephen Innes of SPI Asset Management.
"Questions loom: Will Donald Trump be a 'Deal Maker in Chief' or lean into his 'Tariff Man' persona? How will bond yields react? Can China effectively stimulate consumer demand? Will Trump broker peace in Eastern Europe? Will the dollar maintain its oppressive strength?"
He added that "the crucial question is whether the Federal Reserve will signal a pause starting from the January (policy) meeting".
"My view leans toward an affirmative; the real intrigue, however, lies in how explicitly the Fed will beam this potential shift and confirm a 'hawkish cut'."
While Wall Street fell -- though still just off their recent record highs -- Asian markets diverged. Hong Kong, Shanghai, Seoul, Bangkok and Taipei rose but Sydney, Singapore, Wellington, Mumbai, Jakarta and Manila fell.
Tokyo edged down, though Nissan scorched 23.7 percent higher soon after opening in response to reports it was in preliminary merger talks with Honda, adding the move would help them better compete against Tesla and other electric vehicle makers.
While both firms did not confirm the reports, they had agreed in March to explore a strategic partnership on EVs, which analysts said was aimed at catching up with Chinese competitors.
Nissan in particular has been struggling, announcing 9,000 job cuts last month and slashing its annual sales forecast.
The rise was the biggest since 1974, according to Bloomberg News.
Honda fell about three percent, while Mitsubishi Motors -- of which Nissan is the top stakeholder -- gained 19.7 percent.
On currency markets, the yen edged down against the dollar ahead of the Fed decision, while traders were also awaiting the conclusion of the Bank of Japan's own Thursday meeting as debate swirls about when it will hike rates.
Bitcoin pared gains after earlier hitting a new record of more than $108,315 on Wednesday.
- Key figures around 0710 GMT -
Tokyo - Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)
Hong Kong - Hang Seng Index: UP 0.9 percent at 19,870.44
Shanghai - Composite: UP 0.6 percent at 3,382.21 (close)
Euro/dollar: UP at $1.0510 from $1.0498 Tuesday
Pound/dollar: UP at $1.2712 from $1.2707
Dollar/yen: UP at 153.46 yen from 153.41 yen
Euro/pound: UP at 82.68 pence from 82.52 pence
West Texas Intermediate: FLAT at $70.10 per barrel
Brent North Sea Crude: FLAT at $73.18 per barrel
New York - Dow: DOWN 0.6 percent at 43,449.90 (close)
London - FTSE 100: DOWN 0.8 percent at 8,195.20 (close)
S.F.Warren--AMWN