Asian stocks mixed after Wall St. rally, eyes on Fed

A passerby is reflected on the electronic stock board of a securities firm in Tokyo, Wednesday, Sept. 18, 2013. Asian stock markets struggled to find their footing Wednesday as traders hesitated to make bold moves before the Federal Reserve winds up a crucial policy meeting later in the day. AP PHOTO/SHIZUO KAMBAYASHI

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 percent, or 193.69 points, to 14,505.36, while Shanghai added 0.29 percent, or 6.29 points, to 2,191.85.

However, Sydney ended 0.25 percent lower, shedding 13.1 points, to 5,238.1 while Hong Kong eased 0.27 percent, or 63.07 points, to 23,117.45. Seoul was closed for a public holiday.

While economists tip the Fed to announce a taper of its $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 $85-billion-a-month bond-buying programs,” 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 $5 billion to $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.

Tachibana Securities market adviser Kenichi Hirano said: “A lot (on Thursday) will depend on how US markets react to the central bank’s decision—as well as its rationale for its course of action.”

The dollar bought 99.02 yen, compared with 99.14 yen in New York in Tuesday, while the euro was at $1.3353 and 132.24 yen against $1.3356 and 132.38 yen.

Asian traders were given a bright lead from Wall Street, where the Dow ended 0.23 percent higher and the S&P 500 added 0.42 percent. The Nasdaq climbed 0.75 percent 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 $106.36, while Brent North Sea crude for November was down 41 cents to $108.20.

Gold was $1,300.40 an ounce at 1042 GMT compared with $1,319.11 late Tuesday.

In other markets:

— Taipei fell 0.49 percent, or 40.60 points, to 8,209.18.

Taiwan Semiconductor Manufacturing Co. shed 2.37 percent to Tw$103.0 while chip design house MediaTek was 0.54 percent lower at Tw$370.0.

— Manila lost 0.16 percent, or 10.18 points, to end at 6,333.96.

Top-traded Ayala Land fell 0.53 percent to 28.10 pesos, while Alliance Global dropped 2.99 percent to 26.00 pesos.

— Wellington rose 0.12 percent, or 5.80 points, to 4,703.83.

Air New Zealand gained 1.83 percent to NZ$1.39 while Contact Energy was 2.32 percent higher at NZ$5.29.

— Singapore closed up 0.41 percent, or 12.93 points, at 3,193.85.

Singapore Airlines finished at Sg$10.42, down 0.19 percent, and Singapore Telecom ended 0.27 percent higher at Sg$3.74.

— Bangkok fell 0.32 percent, or 4.65 points, to 1,439.13.

Telecoms company True Corp. gained 5.00 percent to 8.40 baht, while import and export firm Berli Jucker added 4.84 percent to 48.75 baht.

— Kuala Lumpur lost 0.20 percent, or 3.54 points, to 1,771.40.

Genting Malaysia fell 4.6 percent to 4.16 ringgit, while SapuraKencana Petroleum gained 1.1 percent to 3.67 ringgit.

— Jakarta ended down 1.20 percent, or 54.37, at 4,463.25.

Cement maker Semen Indonesia fell 2.08 percent to 14,100 rupiah, while food producer Indofood Sukses Makmur lost 2.19 percent to 6,700 rupiah.

— Mumbai rose 0.80 percent, or 158.13 points, to 19,962.16.

Pharma firm Wockhardt rose 5.00 percent to 559.9 rupees, outsourcing giant Wipro gained 5.41 percent to 475.35 rupees and Dr. Reddy’s Laboratories added 2.64 percent to 2,366.0 rupees.—Danny McCord