Asian stock markets mixed ahead of Fed meeting
Wednesday, 16 December 2009
HONG KONG, Dec 15 (Reuters): Asian stock markets were mixed Tuesday as investors looked to take profits before year's end and awaited the Federal Reserve's latest assessment of the US economy.
The region's lackluster trade followed modest gains on Wall Street, where investors sent major indexes to new highs for 2009 after Dubai's $10 billion bailout. Oil prices inched up, while the dollar strengthened against the yen.
After a big run since March, the markets have drifted this month. Many investors are unwilling to increase their bets toward the end of the year, with lingering uncertainty surrounding debt problems in Dubai and other governments only adding to their caution.
This week, investors will be watching closely what the US central bank has to say about the world's largest economy after its policy meeting Wednesday. It's widely expected to keep interest rates at historic lows.
''The Fed's statement will definitely influence the markets,'' said Peter Lai, investment manager at DBS Vickers in Hong KOng. ''The big questions are when the Fed thinks the unemployment rate will start to go down and it will have to start raising interest rates.''
Japan's Nikkei 225 stock average fell 5.33 points, less than 0.1 per cent, to 10,100.35 and Hong Kong's Hang Seng was off 162.31, or 0.7 per cent, at 21,923.44.
China's main index fell 0.7 per cent while South Korea's Kospi was marginally in the green after flitting in and out of negative territory.
Other markets gained. Australia's benchmark added 0.5 per cent and India's Sensex was up 0.2 per cent. Singapore's index advanced 0.3 per cent.
Tuesday in the US, the Dow rose 29.55, or 0.3 per cent, to 10,501.05, its highest close since October 1, 2008.
The S&P 500 index rose 7.70, or 0.7 per cent, to 1,114.11, its highest finish since October 2, 2008. The Nasdaq composite index rose 21.79, or 1 per cent, to 2,212.10.
Oil prices rose in Asia, with benchmark crude for January delivery rising 38 cents to $69.89 a barrel. The contract rose 36 cents overnight to settle at $69.51.
The dollar rose to 88.89 yen from 88.55 yen. The euro was little changed at $1.4652 from $1.4656.
The region's lackluster trade followed modest gains on Wall Street, where investors sent major indexes to new highs for 2009 after Dubai's $10 billion bailout. Oil prices inched up, while the dollar strengthened against the yen.
After a big run since March, the markets have drifted this month. Many investors are unwilling to increase their bets toward the end of the year, with lingering uncertainty surrounding debt problems in Dubai and other governments only adding to their caution.
This week, investors will be watching closely what the US central bank has to say about the world's largest economy after its policy meeting Wednesday. It's widely expected to keep interest rates at historic lows.
''The Fed's statement will definitely influence the markets,'' said Peter Lai, investment manager at DBS Vickers in Hong KOng. ''The big questions are when the Fed thinks the unemployment rate will start to go down and it will have to start raising interest rates.''
Japan's Nikkei 225 stock average fell 5.33 points, less than 0.1 per cent, to 10,100.35 and Hong Kong's Hang Seng was off 162.31, or 0.7 per cent, at 21,923.44.
China's main index fell 0.7 per cent while South Korea's Kospi was marginally in the green after flitting in and out of negative territory.
Other markets gained. Australia's benchmark added 0.5 per cent and India's Sensex was up 0.2 per cent. Singapore's index advanced 0.3 per cent.
Tuesday in the US, the Dow rose 29.55, or 0.3 per cent, to 10,501.05, its highest close since October 1, 2008.
The S&P 500 index rose 7.70, or 0.7 per cent, to 1,114.11, its highest finish since October 2, 2008. The Nasdaq composite index rose 21.79, or 1 per cent, to 2,212.10.
Oil prices rose in Asia, with benchmark crude for January delivery rising 38 cents to $69.89 a barrel. The contract rose 36 cents overnight to settle at $69.51.
The dollar rose to 88.89 yen from 88.55 yen. The euro was little changed at $1.4652 from $1.4656.