|Regional markets pull back ahead of Fed policy signals
Asian markets mostly fell today as a broadly positive lead from Wall Street was offset by caution ahead of the US Federal Reserve policy meeting.
Profit-takers moved in after Monday's gains fuelled by the decision of fiscal hawk Larry Summers to quit the race to become the next Fed chairman.
Tokyo gave up early gains to end 0.65 percent lower, slipping 93.00 points to 14,311.67, and Seoul shed 0.39 percent, or 7.79 points, to 2,005.58.
Hong Kong gave up 0.31 percent, or 71.89 points, to finish at 23,180.52. Shanghai slipped 2.05 percent, or 45.84 points, to 2,185.56.
Sydney was almost unchanged, edging up 3.2 points to end at 5,251.2, AFP reports.
The two-day Fed meeting ends Wednesday. While investors expect policymakers to begin winding down the US$85 billion-a-month stimulus programme, the key question is the pace of the drawdown.
Global shares turned upwards Monday after Summers withdrew from the running to replace Ben Bernanke as Fed boss.
The US dollar fell to as low as 98.45 yen on Monday as dealers bet that the stimulus, which floods financial markets with cash, would remain in place longer without Summers in charge. However, it picked up in New York to end the day at 99.11 yen.
In Tokyo today it bought 99.20 yen. The euro fetched 132.44 yen and US$1.3348 compared with 132.20 yen and US$1.3337.
Wall Street cheered the news about Summers, with the Dow finishing 0.77 percent higher and the S&P 500 up 0.57 percent. However, the Nasdaq fell 0.12 percent as Apple suffered another sell-off on disappointment over its latest iPhone models.
Gold was US$1,320.40 an ounce compared with US$1,316.10 late Monday.
In other markets:
Taipei was flat, edging down 5.56 points to 8,249.78.
Hon Hai Precision fell 0.13 percent to T$75.9 while Taiwan Semiconductor Manufacturing Co was unchanged at T$105.5.—AFP