Asian markets mostly fell on Tuesday as a broadly positive lead from Wall Street was offset by caution before the US Federal Reserve’s policy meeting.
Profit-takers moved in after Monday’s gains, which were fuelled by the decision of fiscal hawk Larry Summers to quit the race to become the next Fed chairman.
Tokyo’s benchmark Nikkei 225 index closed down 93.00 points at 14,311.67, while the Topix index of all first-section shares was 0.31 percent, or 3.64 points, lower at 1,181.64. Markets were closed on Monday for a public holiday.
“Ahead of the Federal Open Market Committee meeting, investors will likely take a wait-and-see approach,” said Kenichi Hirano, operating officer at Tachibana Securities.
The Fed is to hold a policy meeting on Tuesday and Wednesday amid speculation it will start reeling in its $85-billion-a-month bond-buying programme.
Hirano said the market had already factored in Fed tapering in September.
“The question is the scale of the cutback. If it’s in line with a market view of $10 billion, investors will react positively,” he said. “If it’s $5 billion, it will be positive. But if it’s over $15 billion, it’s a negative for the market,” he told Dow Jones Newswires.
Exporters were mixed in Tokyo. Canon rose 0.93 percent to 3,230 yen and Sony was up 0.90 percent at 2,115 yen while Toyota Motor eased 0.63 percent to 6,240 yen.
Nissan was down 0.50 percent at 993 yen
The Seoul index 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.
In Tokyo on Tuesday the dollar bought 99.20 yen. The euro fetched 132.44 yen and $1.3348 compared with 132.20 yen and $1.3337.
Oil prices fell as supply fears receded thanks to a US-Russia deal that may see Syria give up its chemical weapons and avoid an imminent US military strike.
New York’s main contract, West Texas Intermediate for delivery in October, eased 59 cents to $106.00 in afternoon trade. Brent North Sea crude for November slipped 29 cents to $109.78.
Gold was $1,320.40 an ounce at 0800 GMT compared with $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 Tw$75.9 while Taiwan Semiconductor Manufacturing Co was unchanged at Tw$105.5.
– Wellington was also flat, edging up 4.40 points to 4,698.03.
Telecom rose 1.72 percent to NZ$2.36 and Fletcher Building was down 1.55 percent at NZ$9.50.
– Manila rose 0.66 percent, or 41.43 points, to 6,344.14.
Ayala Land rose 2.17 percent to 28.25 pesos, while SM Prime Holdings advanced 2.36 percent to 17.38 pesos. SM Investments fell 1.24 percent to 795 pesos.
Asian stocks mostly lower ahead of Fed meeting
