Asia Shares Mixed as Traders Watch Iraq, Fed Meeting
Asian markets were mixed Tuesday, following a tepid lead from Wall Street ahead of a U.S. Federal Reserve policy meeting, while oil edged down a touch from nine-month highs as traders nervously watch the crisis in Iraq.
The dollar nudged a little higher against the yen after the previous day's sell-off but the uncertainty caused by events in the Gulf kept gains to a minimum.
Tokyo closed 0.29 percent, or 42.68 points, higher to finish at 14,975.97 after sinking more than one percent on Monday, while Seoul gained 0.40 percent, or 7.96 points, to 2,001.55.
But Sydney gave up 0.21 percent, or 11.6 points, to end at 5,400.7 while Shanghai slipped 0.92 percent, or 19.29 points, to 2,066.70. In late trade Hong Kong was 0.47 percent lower.
With few economic catalysts to drive trade, Iraq has dominated investors' attention as militants sweep across the country, taking over key cities and heading for Baghdad.
On Monday the jihadists battled government forces for control of a strategic northern town, while U.S. officials considered using drone strikes against the rebels.
The fighting has raised fears over supplies of oil from Iraq, a key exporter, sending prices rocketing to highs not seen since September.
On Tuesday dealers cashed in some of those gains, although losses were limited. In the afternoon U.S. benchmark West Texas Intermediate for July delivery fell 35 cents to $106.55 a barrel in afternoon trade, while Brent crude for August declined 38 cents to $112.56.
On Wall Street the three main share indexes ended lower last week but edged up slightly Monday, helped by a better-than-expected rise in U.S. industrial production.
The Dow edged up 0.03 percent, the S&P 500 tacked on 0.08 percent and the Nasdaq rose 0.24 percent.
Attention will now turn to the Fed's policy meeting that wraps up on Wednesday.
Expectations are for the bank to cut a further $10 billion from its monthly stimulus spending and keep interest rates at record lows. Investors are more interested in what chief Janet Yellen has to say about future policy.
Kathy Lien, managing director at BK Asset Management, said the Fed could tweak its forecasts for the year to trim its unemployment projection and raise its estimate for inflation.
If that happens, "Yellen will need to provide an explanation that convinces the market (the Fed) hasn't gotten any closer to tightening", Lien said. "If she fails, the U.S. dollar and Treasury yields will rise."
In afternoon Tokyo foreign exchange trade the dollar was worth 101.95 yen compared with 101.84 yen in New York.
The euro bought $1.3561 and 138.27 yen, up from $1.3570 and 138.20 yen.
Gold fetched $1,265.70 an ounce at 0740 GMT compared with $1,280.00 late Monday.
In other markets:
-- Taipei added 0.41 percent, or 37.67 points, to 9,240.6.
Taiwan Semiconductor Manufacturing Co was 0.81 percent higher at Tw$125.0 while leading chip design house MediaTek gained 2.72 percent to Tw$510.0.
-- Wellington rose 0.28 percent, or 14.70 points, to 5,193.50.
Fletcher Building was up 0.34 percent at NZ$8.96 and Telecom added 1.10 percent to NZ$2.75.
Source: Agence France Presse
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://www.naharnet.com/stories/en/135268 |