Asian shares broadly higher on Wall Street lead

A man looks at an electronic stock board of a securities firm in Tokyo, Tuesday, Dec. 17, 2013. Most Asian stock markets edged up Tuesday, with some indexes regaining slight losses after opening in directionless trading ahead of the US Federal Reserve meeting. AP PHOTO/KOJI SASAHARA

HONG KONG—Asian markets were mostly higher on Tuesday as Wall Street provided a positive lead following upbeat US data before a closely watched Federal Reserve meeting.

The dollar eased against the yen but remained up from Monday’s levels in Asia, as investors wait to see whether the Fed will announce a cut in its massive stimulus program after a two-day meeting.

Tokyo rose 0.83 percent, or 125.72 points, to 15,278.63, Sydney closed up 0.27 percent, or 13.6 points, at 5,103.2 and Seoul ended 0.23 percent, or 4.59 points, higher at 1,965.74.

But Hong Kong lost 0.20 percent, or 45.43 points, to end at 23,069.23 and Shanghai fell 0.45 percent, or 9.78 points, to 2,151.08.

Global markets have mostly fallen over the past week as investors speculate about the future of the Fed’s $85 billion a month bond-buying program, which has helped fuel an equities rally since it was unveiled in September last year.

But as the US central bank prepares for a two-day meeting starting Tuesday, investors in most markets picked up cheap stocks after another set of positive US figures showing industrial output surged a solid 1.1 percent in November.

Also Monday, preliminary data indicated US manufacturing expanded for a fourth consecutive month in December.

On Wall Street the Dow rose 0.82 percent, the S&P 500 gained 0.63 percent and the Nasdaq picked up 0.71 percent.

Markit Economics also said business activity in the 17-nation eurozone ticked up in December, although there was still weakness in France.

Market-watchers said traders had priced in any reduction in the US stimulus following upbeat data, including on unemployment and economic growth, as well as the expected passage of a bipartisan budget deal through Congress that will avert another government shutdown.

“Over the past week or so, the implied probability of ‘tapering’ by the Fed has increased. The US budget deal and better retail sales for November were some of the catalysts for a change in sentiment toward tapering happening at the December (Fed) meeting,” said analysts at Nomura in a research note.

It added that 37 percent of polled clients expected the move this month, slightly more than those forecasting a January move.

“It has been priced with a very high probability for one of the next three meetings, and it may not matter greatly if the tapering starts in December, or in January or March.”

In the forex market the dollar dipped slightly against the yen but remained higher than its Monday levels in Tokyo. It had suffered a sell-off Friday after hitting a five-year high of 103.93 yen.

The greenback was at 102.98 yen in afternoon trade, against 103.02 yen late in New York after slipping to 102.62 yen at one point Monday. The euro was quoted at $1.3776 and 141.84 yen against $1.3761 and 141.77 yen.

Oil prices dipped, with New York’s main contract, West Texas Intermediate for January delivery, down 28 cents at $97.20 in afternoon trade. Brent North Sea crude for February eased 36 cents to $109.35.

Gold fetched $1,239.20 at 1135 GMT compared with $1,229.05 late Monday.

In other markets:

— Taipei rose 0.47 percent, or 39.06 points, to 8,352.93.

Taiwan Semiconductor Manufacturing Co. added 1.47 percent to Tw$103.5 while smartphone maker HTC was 0.34 percent higher at Tw$145.5.

— Wellington fell 0.16 percent, or 7.59 points, to 4,728.02.

Air New Zealand was down 0.61 percent at NZ$1.625, Telecom slipped 1.49 percent to NZ$2.32 while Warehouse Group added 1.66 percent to NZ$3.68.

— Singapore closed up 0.45 percent, or 13.80 points, at 3,067.57.

United Overseas Bank added 0.35 percent to Sg$20.13 while Asian Media group Singapore Press Holdings rose 0.75 percent to Sg$4.02.

— Manila climbed 2 percent, or 116.45 points, to 5,928.99.

Philippine Long Distance Telephone gained 0.46 percent at 2,646 pesos while Ayala Corp. added 2.10 percent at 536 pesos.

— Jakarta ended up 1.37 percent, or 56.39 points, at 4,182.35.

State miner Aneka Tambang gained 0.88 percent to 1,140 rupiah, while mobile phone operator Telekomunikasi Indonesia lost 1.20 percent to 2,050 rupiah.

— Bangkok edged up 0.66 percent, or 8.78 points, to 1,337.18.

Coal producer Banpu rose 3.94 percent to 33 baht, while Bangkok Bank gained 1.09 percent to 185 baht.

— Kuala Lumpur added 0.71 percent, or 13.02 points, to 1,850.90.

Axiata ended 1.8 percent higher at 6.87 ringgit while DiGi.com gained 1 percent to 4.92. Telekom Malaysia dropped 0.5 percent to 5.51 ringgit.

— Mumbai slid 0.23 percent, or 47.38 points, to 20,612.14, its sixth straight day of declines.

HDFC Bank fell 3.55 percent to 658.45 rupees while the world’s largest coal miner Coal India declined 2.89 percent to 278.6 rupees.—With Dow Jones Newswires