Mumbai, Dec. 2 -- Asian indices ended mixed, despite growing expectations of a Federal Reserve rate cut next week, while Japanese stocks struggled amid signals the Bank of Japan may raise interest rates. China's Shanghai Composite index dropped 0.42 percent to 3,897.71 as investors awaited readouts from the annual agenda-setting Central Economic Work Conference and the December Politburo meeting. Hong Kong's Hang Seng index edged up by 0.24 percent to 26,095.95, paring a gain of as much as 0.9 percent.

Japanese markets finished marginally higher after the auction of 10-year Japanese bonds saw strong demand, and a measure of consumer confidence reached its highest level in 19 months. Meanwhile, the Kospi average surged 1.90 percent to 3,9...