• Fed meeting causes mixed results for Asian markets


    HONG KONG: Asian markets were mixed on Tuesday, with traders sitting on the sidelines as they await the US Federal Reserve’s plans for its stimulus program.

    The dollar enjoyed another positive day, with Wall Street also providing a strong lead, thanks to upbeat US housing data.

    Tokyo stocks dropped 0.20 percent or 25.84 points to 13,007.28, after jumping 2.73 percent the day before. Sydney fell 0.24 percent or 11.5 points, to 4,814.4. But Seoul rose 0.93 percent or 17.52 points to 1,900.62.

    Hong Kong finished flat, edging down 0.02 points to 21225.88, while Shanghai was up 0.14 percent or 3.07 points at 2,159.29.

    Markets have been in turmoil for weeks as investors speculate on whether the Federal Reserve will continue with its $85-billion-a-month quantitative easing program, which has helped fuel a global stocks rally.

    The Fed is expected to announce on Wednesday after a two-day meeting when or if it intends to begin reeling in the huge bond-buying scheme, as the economy shows signs of picking up.

    A mixed bag of US data recently has pointed to an uncertain recovery, with many analysts predicting that the Fed would hold off cutting back on the purchases for the time being.

    There were, however, some signs of strength in the world’s biggest economy on Monday, with a confidence index of national home builders hitting a seven-year high as they begin to see demand for new homes picking up pace.

    The data provided a lift to shares on Wall Street. The Dow finished up 0.73 percent, the S&P 500 advanced 0.76 percent, and the Nasdaq jumped 0.83 percent.

    The dollar edged up against the yen after see-sawing last week.

    The US unit was trading at 95.15 yen in afternoon trade, against 94.67 yen in New York City late on Monday. However, it is still down around 9 percent from its recent peak in late May.

    The euro bought 12701 yen and $1.3350 compared with 126.52 yen and $1.3363.

    Oil prices also eased. New York City’s main contract, light sweet crude for delivery in July, fell 17 cents to $97.60 a barrel in the late afternoon, and Brent North Sea crude for August delivery lost two cents to $105.56 45.


    Please follow our commenting guidelines.

    Comments are closed.