|Asian shares mixed before Fed meeting
Asian markets were mixed Tuesday after suffering a heavy sell-off in the previous session, with traders still nervous over emerging economies as they await the Federal Reserve's next move on its stimulus program.
The dollar edged higher against the yen after sinking to near two-month lows on Monday, AFP reports.
Tokyo rose 0.10 percent by the break, Hong Kong eased 0.25 percent and Shanghai and Seoul were flat. Sydney, which was closed Monday for a holiday, fell 0.73 percent.
Regional markets slumped on Monday, taking a lead from Wall Street and Europe on Friday, as a plunge in the Argentine peso last week sparked fresh worries about developing nations' economies.
Wall Street extended its losses on Monday, with the Dow falling 0.26 percent, the S&P 500 down 0.49 percent and the Nasdaq 1.08 percent lower. In Europe the main markets in London, Paris and Frankfurt also saw big losses.
There is growing concern that with the Fed on a course of winding down its stimulus program, the cash that has provided strong investment support for emerging economies -- from Argentina and South Africa to Indonesia and India -- could dry up, leading to a flight of capital.
Adding to that is a string of weak Chinese data, including last week's dire manufacturing figures, that have raised questions about the world's number two economy, which is a key driver of growth.
Eyes are now on the Fed's latest two-day meeting, which kicks off Tuesday. Despite the latest turmoil, there is speculation it will cut a further US$10 billion from its monthly asset purchases, to US$65 billion, following a similar announcement last month.