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Business News/ Market / Stock-market-news/  Asian shares lower on Fed tapering concerns
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Asian shares lower on Fed tapering concerns

Tokyo falls 1.12%, Seoul slips 0.51%, Sydney ends 0.82% lower, Hong Kong loses 0.51%

While a bipartisan budget deal in Washington fuelled hopes that another government shutdown will be avoided next month, it is believed that the deal will also give the Fed more room to wind down the bond-buying scheme. Photo: AFPPremium
While a bipartisan budget deal in Washington fuelled hopes that another government shutdown will be avoided next month, it is believed that the deal will also give the Fed more room to wind down the bond-buying scheme. Photo: AFP

Hong Kong: Asian markets eased on Thursday, following a lead from Wall Street, as investors looked to next week’s Federal Reserve policy meeting with speculation growing that the bank will cut its stimulus programme.

While a bipartisan budget deal in Washington fuelled hopes that another government shutdown will be avoided next month, it is believed that the deal will also give the Fed more room to wind down the bond-buying scheme.

Tokyo fell 1.12%, or 173.24 points, to close at 15,341.82, while Seoul slipped 0.51%, or 10.04 points, to 1,967.93 and Sydney ended 0.82%, or 41.7 points, lower at 5,062.5.

Shanghai closed a tad lower, dipping 1.37 points to 2,202.80 while Hong Kong lost 0.51%, or 120.12 points, to end at 23,218.12.

With few other catalysts to drive business, dealers are playing a wait-and-see game ahead of the Fed’s policy announcement next week, with opinion split on whether it will begin reeling the stimulus in this month or early next year.

The Fed’s $85 billion-a-month scheme has been credited with fuelling a global equities rally this year as it has supplied vast sums of cheap money to investors.

A series of strong recent data—including falling unemployment and strong economic growth figures—have strengthened the argument for a December cut, while this month a top Fed official indicated a small reduction could be on the cards.

Added to that was Tuesday’s Democratic-Republican two-year budget deal which, if passed by Congress, would avert a shutdown crisis such as the one that paralysed Washington in October.

Wall Street’s initial reaction to that deal was a sell-off, with the Dow losing 0.81%, the S&P 500 off 1.13% and the Nasdaq down 1.40%. Analysts said the indexes were also subject to profit-taking after enjoying immense rallies this year.

On forex markets, the dollar edged up to 102.79 yen in afternoon trade, against 102.40 yen in New York on Wednesday.

The euro fetched $1.3793, compared with $1.3785, adding to four straight days of advances against the greenback. The single currency also fetched 141.80 yen compared with 141.19 yen.

In oil trade, New York’s main contract, West Texas Intermediate (WTI) for January delivery, was up 16 cents at $97.60 in afternoon trade while Brent North Sea crude for January added 19 cents to $109.89.

Gold fetched $1,242.75 at 1050 GMT compared with $1,256.40 late Wednesday.

In other markets:

—Bangkok slid 0.96%, or 13.14 points, to 1,356.21.

Telecoms company True Corporation fell 6.70% to 8.35 baht, while coal producer Banpu lost 2.33% to 31.50 baht.

—Jakarta fell 1.39%, or 59.53 points, to 4,212.218.

Bank Negara Indonesia dropped 3.14% to 3,850 rupiah, while Hero Supermarket gained 1.03% to 2,450 rupiah.

—Kuala Lumpur dived 0.49%, or 8.95 points, to 1,833.87.

Tenaga Nasional fell 2.7% to 11.00 ringgit while MISC fell 2.4% to 5.37. DiGi.com added 1.5% to 4.83 ringgit.

—Manila shed 2.14%, or 126.21 points, to 5,762.53.

Metropolitan Bank fell 1.94% to 70.70 pesos, Philippine Long Distance Telephone eased 1.29% to 2,610 pesos and International Container Terminal Services retreated 0.99% to 100.50 pesos.

—Mumbai fell 1.16%, or 245.80 points, to 20,925.61.

Private vehicle manufacturer Tata Motors fell 4.55% to 360.60 rupees while private Suzlon Energy fell 3.18% to 9.73 rupees.

—Singapore dropped 0.06%, or 1.70 points, to 3,059.04.

Oversea-Chinese Banking Corporation eased 0.31% to Sg$9.80 while agri-business company Wilmar International rose 0.30% to Sg$3.39.

—Taipei fell 0.86%, or 72.44 points, to 8,361.33.

Taiwan Semiconductor Manufacturing Co. lost 1.9% to end at Tw$103.0 while Hon Hai rose 0.38% to Tw$78.5.

—Wellington was flat, edging up 3.89 points to 4,708.20.

Telecom added 1.31% to NZ$2.32, Trade Me was off 0.71% at NZ$4.19 and Air New Zealand was steady at NZ$1.64.

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Published: 12 Dec 2013, 07:55 AM IST
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