The Japan Times - Stock markets, dollar climb before Fed rate decision

Shares in Nissan soared more than 20 percent on reports that the Japanese car titan is in merger talks with rival Honda.

The Fed is widely expected to cut borrowing costs for a third time in a row when it concludes its gathering Wednesday, leaving traders to focus on its statement for clues over the outlook.

"The most important thing from the Fed's meeting will be comments on monetary policy in 2025 as the market is starting to fret about future rate cuts being less frequent," noted Russ Mould, investment director at AJ Bell.

With US inflation coming down, decision-makers have been able to loosen their grip on policy since September.

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 reignite, forcing the Fed to re-evaluate its rates timetable.

Across the Atlantic, official data Wednesday showed UK inflation picked up in November, firming expectations that the Bank of England will hold off cutting its key interest rate on Thursday.

With annual inflation rising as expected to 2.6 percent, the pound also steadied.

Traders also awaited conclusion of the Bank of Japan's policy meeting Thursday.

Chinese stock markets and oil prices gained on hopes of more stimulus to boost China's flagging economy.

Focus was also on the car sector. While Nissan shares soared, Honda fell about three percent. Mitsubishi Motors -- whose top stakeholder is Nissan -- accelerated almost 20 percent.

Elsewhere on the corporate front, Italy's second largest bank UniCredit increased its stake in Germany's Commerzbank to around 28 percent amid growing speculation of an attempted buyout.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.3 percent at 8,216.08 points

Paris - CAC 40: UP 0.3 percent at 7,385.05

Frankfurt - DAX: UP 0.3 percent at 20,311.53

Tokyo - Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 19,864.55 (close)

Shanghai - Composite: UP 0.6 percent at 3,382.21 (close)

New York - Dow: DOWN 0.6 percent at 43,449.90 (close)

Euro/dollar: FLAT at $1.0498

Pound/dollar: UP at $1.2709 from $1.2707

Dollar/yen: UP at 153.59 yen from 153.41 yen

Euro/pound: UP at 82.61 pence from 82.52 pence

Brent North Sea Crude: UP 0.6 percent at $73.59 per barrel

West Texas Intermediate: UP 0.6 percent at $70.09 per barrel

K.Yoshida--JT