Asian bourses mostly slipped yesterday before the US Federal Reserve’s monetary policy meeting, and as lingering concerns over Chinese and US economic data weighed on global markets.
US stocks finished mixed on Monday, with investors cautious ahead of the Fed’s two-day monetary policy meeting that started yesterday.
The US central bank might adjust its timing for raising benchmark interest rates, as critics say its nearly six-year-old zero rate policy is feeding asset bubbles and possibly inflation.
The Fed has previously said it would keep interest rates low for a “considerable time” after ending its massive stimulus programme, based on continued weakness in the labour market.
A rate increase could hurt Asian markets by making them vulnerable to a selloff, as the incentive for investors to seek higher yields in regional markets is reduced.
Tokyo fell 0.23%, or 36.76 points, to 15,911.53 and Sydney lost 0.51%, or 28.1 points, to end at 5,445.5.
Shanghai sank 1.82%, or 42.59 points, to 2,296.55 and Hong Kong, which opened only for the afternoon session due to a typhoon, fell 0.91%, or 220.98 points, to end at 24,136.01. However, Seoul added 0.35%, or 7.10 points, to 2,042.92.
In other markets, Singapore closed down 1.20%, or 39.85 points, to 3,272.62; Bangkok lost 0.87%, or 13.71 points, to 1,565.41; Jakarta ended down 0.28%, or 14.40 points, at 5,130.50; Taipei fell 0.91%, or 84.06 points, to 9,133.4; Wellington ended down 0.40%, or 21.08 points, at 5,189.79 and Manila closed 0.27% higher to 7,180.34 points.
