People walk past an electronic stock board of a securities firm in Tokyo on Tuesday, Oct. 28, 2014. Asian stocks were mixed Tuesday before the US Federal Reserve’s policy meeting, which will be closely scrutinized for clues to its plans on interest rates. AP PHOTO/EUGENE HOSHIKO
HONG KONG–Asian markets were mixed Tuesday before the US Federal Reserve’s policy meeting, which will be closely scrutinized for clues to its plans on interest rates.
Wall Street provided little direction as investors took a breather after last week’s strong performance across all three main indexes.
Tokyo was down 0.38 percent, or 58.81 points, at 15,329.91, Sydney shed 0.12 percent, or 6.35 points, to close at 5,452.6 and Seoul fell 0.33 percent, or 6.29 points, to close at 1,925.68.
But Hong Kong tacked on 1.63 percent, or 377.13 points, to 23,520.36. Shanghai climbed 2.07 percent, or 47.43 points, to 2,337.87 after Monday’s sell-off sparked by news of a delay to plans for a cross-trading platform between the two markets.
The Fed, which starts its two-day meeting later Tuesday, is expected to bring an end to its vast asset-buying program that has been credited with helping the country avoid recession after the financial crisis.
However, traders are more interested in what bank policymakers will have to say about interest rates, as they try to balance the impact on the global economy of any increase against the need to avoid any bubbles developing at home.
While the Fed has repeatedly said the first rise would come “a considerable time” after the bond-buying stops, dealers want to know how its language will change once it has.
“Nobody really expects the US central bank to derail the wind-down of its own stimulus program because of global economic growth fears, but the direction and pace of US interest rates is a real concern,” Tatsunori Kawai, chief strategist at kabu.com Securities, told Dow Jones Newswires.
On Wall Street the Dow edged up 0.07 percent, the S&P 500 dipped 0.15 percent and the Nasdaq put on 0.05 percent.
Euro shakes off German data
On foreign exchange markets the dollar edged up to 107.84 yen from 107.78 yen in New York Monday afternoon.
And the euro fetched $1.2711 and 137.07 yen against $1.2699 and 136.86 yen in US trade.
The single currency has been given a lift by a better-than-expected result in eurozone bank stress tests. The European Central Bank said at the weekend that more than four in five of lenders assessed had been given a clean bill of health.
However, the unit’s gains were capped after a closely watched survey of German business confidence fell for a sixth straight month, hitting its lowest level since December 2012.
Oil prices moved lower. US benchmark West Texas Intermediate for December delivery fell 14 cents to $80.86 while Brent crude for December eased 17 cents to $85.66 in afternoon trade.
Gold was at $1,228.59 an ounce against $1,230.40 late Monday.
In other markets:
— Jakarta ended down 0.46 percent, or 22.99 points, at 5,001.30.
Palm oil firm Sinar Mas Agro Resources and Technology gained 3.25 percent to 7,950 rupiah, while lender Bank Permata slipped 1.30 percent to 1,465 rupiah.
— Bangkok rose 0.56 percent, or 8.64 points, to 1,556.53.
Telecoms company True Corporation soared 5.50 percent to 11.50 baht, while Airports of Thailand gained 3.86 percent to 242.00 baht.
— Taipei gained 1.69 percent, or 145.77 points, to 8,773.55.
Hon Hai Precision Industry closed 1.60 percent higher at Tw$95.5 while Cathay Financial Holding added 4.57 percent to Tw$49.15.
— Wellington was a touch higher, edging up 4.51 points to 5,338.33.
Chorus gained 0.49 percent to NZ$2.07 and Trade Me added 0.79 percent to NZ$3.85.
— Manila closed 0.52 percent lower, giving up 36.80 points to 7,066.74.
Philippine Long Distance Telephone fell 0.62 percent to 3,192 pesos while Universal Robina Corp. slid 0.22 percent to 182.60 pesos.
— Singapore closed down 0.45 percent, or 14.46 points, at 3,211.65.
Oversea-Chinese Banking Corporation fell 0.61 percent to Sg$9.72 while agribusiness company Wilmar International rose 1.29 percent to Sg$3.15.
— Kuala Lumpur ended up 2.53 points, or 0.14 percent, at 1,825.68.
SapuraKencana Petroleum dropped 4.24 percent to 3.39 ringgit, while banking group CIMB inched 0.49 percent higher to 6.20 ringgit.
— Mumbai closed up 127.92 points, or 0.48 percent, at 26,880.82.
Sun Pharmaceutical Industries climbed 4.31 percent to 839.25 rupees, while Hero Motorcorp fell 1.68 percent to 3,034.80 rupees.