- POSTED: 18 Sep 2013 16:31
This graph is an experimental feature that tracks number of views over time.
Asian markets were mixed on Wednesday following a strong lead from Wall Street, with investors biding their time as they await the end of a crucial Federal Reserve policy meeting.
HONG KONG: Asian markets were mixed on Wednesday following a strong lead from Wall Street, with investors biding their time as they await the end of a crucial Federal Reserve policy meeting.
With few other trading cues, the main focus is on the Fed meeting, which is expected to see policymakers begin reeling in the bank's massive stimulus programme.
Tokyo rose 1.35 per cent, or 193.69 points, to 14,505.36, while Shanghai added 0.29 per cent, or 6.29 points, to 2,191.85.
However, Sydney ended 0.25 per cent lower, shedding 13.1 points, to 5,238.1 while Hong Kong eased 0.27 per cent, or 63.07 points, to 23,117.45. Seoul was closed for a public holiday.
In other markets, Taipei fell 0.49 per cent, or 40.60 points, to 8,209.18 and Manila lost 0.16 per cent, or 10.18 points, to end at 6,333.96.
While economists tip the Fed to announce a taper of its US$85-billion-a-month bond-buying scheme -- known as quantitative easing (QE) -- the big question is how much it will be cut by.
"Most investors expect some kind of start to the tapering of the central bank's US$85-billion-a-month bond-buying programmes," Monex market analyst Toshiyuki Kanayama told Dow Jones Newswires.
"A modest paring back is the most likely scenario, but few players are willing to place significant bets in any one direction."
Reduction forecasts range from US$5 billion to US$15 billion and Michael James, managing director of equity trading at Wedbush Securities said a larger taper "might cause a little bit of market weakness. Anything else is priced in".
Global markets have focused intently on the Fed's plans for its stimulus, which has been credited with fuelling a huge investment spree.
Emerging economies -- particularly India and Indonesia -- have suffered a flight of foreign cash since Fed boss Ben Bernanke in May said the US economy was showing signs of strength that meant QE could be wound in.
On currency markets, the dollar pushed back against the yen on the expected tapering -- which boosts demand for the greenback as there is less cash swirling around financial markets.
The dollar bought 99.02 yen, compared with 99.14 yen in New York on Tuesday, while the euro was at US$1.3353 and 132.24 yen against US$1.3356 and 132.38 yen.
Asian traders were given a bright lead from Wall Street, where the Dow ended 0.23 per cent higher and the S&P 500 added 0.42 per cent. The Nasdaq climbed 0.75 per cent to its highest close since September 2000.
On oil markets, New York's main contract, West Texas Intermediate for delivery in October was up 94 cents at US$106.36, while Brent North Sea crude for November was down 41 cents to US$108.20.
Gold was US$1,305.40 an ounce at 0805 GMT compared with US$1,319.11 late Tuesday.