By Ese Erheriene

Bank stocks dip after Fed releases minutes

Stock markets across Asia were broadly lower early Thursday, following lackluster performance on Wall Street overnight, as investors digested the latest Federal Reserve meeting minutes.

Markets have mostly drifted this week, seeing short-term moves ahead of key events before correcting as the muted impact wanes.

The Nikkei Stock Average fell 0.4%, moving in a tight range due to a slightly stronger yen. Australia's S&P/ASX 200 was down 0.3%, while Hong Kong's Hang Seng Index was off 0.4%.

Overnight, the Federal Open Market Committee released the minutes of its two-day meeting ended Feb. 1, where members believed it might be appropriate to lift U.S. interest-rates "fairly soon." Additionally, proposed tax cuts by the Trump administration and new spending could see rates increase further to keep a lid on inflation.

But the minutes didn't offer a clear sign on when the Fed will next raise rates, disappointing some investors. Among key U.S. indexes, the S&P 500 and the Nasdaq both slipped 0.1%, while the Dow Jones Industrial Average ended up 0.2%.

Bank stocks, which rallied in anticipation of the minutes, were lower across the region. The Hang Seng finance subsection was 0.4% lower, while Japan's Topix bank subsection fell 1.6%.

"We still believe in [a rate increase] three times, so we're trying to stick with that assumption, but I think the feeling is getting more and more [that] there may be only two," said Arthur Kwong, head of Asia Pacific equities at BNP Paribas Investment Partners.

In corporate news, shares of Nissan Motor (NSANY) were down 0.9%, underperforming the broader market, after Chief Executive Carlos Ghosn said early Thursday he will step down in April and be replaced by his recently appointed co-CEO. Ghosn will remain as chairman of Nissan, however.

Shares in oil companies rebounded following strong declines in the previous session, amid concerns about the high level of U.S. stockpiles. Brent , the benchmark oil price, was recently up 0.8%. In Australia, Oil Search (OSH.AU) was up 0.3% and Woodside Petroleum (WPL.AU) added 0.8%, while Japan's Inpex was up 1.2%.

In Korea, the benchmark Kospi index was flat as the country's central bank kept interest rates unchanged, as expected. However, ING said it had "penciled in a cut for the first quarter on the view that it would be needed to reduce the drag on activity from elevated political noise."

In currencies, the yen was last 0.1% higher against the dollar, which pressured Japanese exporters' bottom lines by making it more expensive for them to ship their goods around the globe.

Later in the global trading day, investors will be watching for market-moving data such as Germany's gross domestic product and U.S. jobless claims.

(END) Dow Jones Newswires

February 22, 2017 22:50 ET (03:50 GMT)

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