Asian shares slip ahead of US Fed decision

A currency trader watches the computer screens at the foreign exchange dealing room of the Korea Exchange Bank headquarters in Seoul, South Korea, on Sept. 3, 2014. Asian bourses mostly slipped Tuesday, Sept. 16, before the US Federal Reserve’s monetary policy meeting, and as lingering concerns over Chinese and US economic data weighed on global markets. AP PHOTO/LEE JIN-MAN

HONG KONG–Asian bourses mostly slipped Tuesday before the US Federal Reserve’s monetary policy meeting, and as lingering concerns over Chinese and US economic data weighed on global markets.

US stocks finished mixed Monday, with investors cautious ahead of the Fed’s two-day monetary policy meeting that starts later Tuesday.

The US central bank might adjust its timing for raising benchmark interest rates, as critics say its nearly six-year-old zero rate policy is feeding asset bubbles and possibly inflation.

The Fed has previously said it would keep interest rates low for a “considerable time” after ending its massive stimulus program, based on continued weakness in the labor market.

A rate increase could hurt Asian markets by making them vulnerable to a selloff, as the incentive for investors to seek higher yields in regional markets is reduced.

Tokyo fell 0.23 percent, or 36.76 points, to 15,911.53 and Sydney lost 0.51 percent, or 28.1 points, to end at 5,445.5.

Shanghai sank 1.82 percent, or 42.59 points, to 2,296.55 and Hong Kong, which opened only for the afternoon session due to a typhoon, fell 0.91 percent, or 220.98 points, to end at 24,136.01.

However, Seoul added 0.35 percent, or 7.10 points, to 2,042.92.

Official US data released Monday showed industrial production unexpectedly fell in August by 0.1 percent after six months of gains, while manufacturing output slipped 0.4 percent.

Scotland fear weighs on pound

The data added to worries after China reported over the weekend that industrial production stuttered in August, with growth dropping sharply to 6.9 percent, the slowest pace in more than five years.

The dollar was at 107.05 yen in Asian trade compared with 107.18 yen in New York Monday afternoon.

The euro bought $1.2943 and 138.60 yen against $1.2940 and 138.69 yen in US trade.

The pound dipped to $1.6181 from $1.6234 in New York as investors keep a nervous eye on Thursday’s Scottish independence vote, which could lead to the break-up of the United Kingdom and hammer its economy.

US stocks finished mixed Monday as the tech-rich Nasdaq dropped 1.07 percent following a cautious report on Tesla Motors.

The Dow rose 0.26 percent and the S&P 500 dipped 0.07 percent.

The Hong Kong stock exchange canceled its morning trading session as a powerful typhoon swept past the city.

Authorities raised the No. 8 typhoon warning–the third in a five-tier system–which shutters schools and businesses, but lowered it around 0300 GMT, allowing the bourse to reopen in the afternoon.

Oil prices were mixed. US benchmark West Texas Intermediate for October delivery was down 29 cents at $92.63, while Brent crude for November eased 22 cents to $97.66 in afternoon trade. Brent’s October contract expired Monday at $96.65, its lowest level since June 2012.

Gold was at $1,241.18 an ounce, against $1,234.92 an ounce late Monday.

In other markets:

— Singapore closed down 1.20 percent, or 39.85 points, to 3,272.62.

Agribusiness company Wilmar International fell 0.95 percent to Sg$3.12 while oil rig maker Keppel Corp. eased 1.32 percent to Sg$10.46.

— Bangkok lost 0.87 percent, or 13.71 points, to 1,565.41.

Coal producer Banpu fell 2.40 percent to 30.50 baht, while supermarket operator Big C Supercenter dropped 4.70 percent to 223 baht.

— Jakarta ended down 0.28 percent, or 14.40 points, at 5,130.50.

Bank Negara Indonesia lost 1.33 percent at 5,575 rupiah, while tobacco company Gudang Garam gained 0.98 percent at 56,550 rupiah.

— Taipei fell 0.91 percent, or 84.06 points, to 9,133.4.

Smartphone maker HTC slipped 3.42 percent to Tw$127.0 while Taiwan Semiconductor Manufacturing Co. was 0.81 percent lower at Tw$122.5.

— Wellington ended down 0.40 percent, or 21.08 points, at 5,189.79.

Contact Energy fell 1.25 percent to NZ$5.54 and Spark eased 0.49 percent to NZ$3.05

— Manila closed 0.27 percent higher, advancing 19.07 points to 7,180.34.

Philippine Long Distance Telephone added 0.18 percent to 3,306 pesos, while Puregold Price Club rose 2.97 percent to 34.70 pesos.

— Mumbai fell 1.21 percent, or 324.05 points, to end at 26,492.51.

GMR Infrastructure slid 10.26 percent to 22.30 rupees, while Castrol India rose 4.23 percent to 438.45 rupees.

— Kuala Lumpur was closed for a public holiday.