Most Asian bourses flat ahead of U.S. Fed meeting

Most Asian bourses flat ahead of U.S. Fed meeting

SINGAPORE (Agencies): Japanese shares headed higher while most other Asian equity markets were little changed on Tuesday, as investors awaited the outcome of the U.S. Federal Reserve meeting later in the day.

Also adding an air of uncertainty to the equity market was Saturday's scheduled unveiling by index compiler Morgan Stanley Capital International (MSCI) of its new constituents and inclusion factors for its global indices.

"With the FOMC (Federal Open Market Committee) and the MSCI reshuffle lined up ahead of us, most investors are in a fence- sitting mode," said Yutaka Miura, deputy manager of the equity information section at Shinko Securities.

"Meanwhile, some took a cue from (the) weaker Nasdaq in part because there are not many other convincing trading incentives around."

Tokyo's Nikkei 225 Index closed up 181.01 points or 1.30 percent at 14,054.03.

In the U.S. markets on Monday technology stocks fell while blue chips gained modestly as investors debated whether the Federal Reserve will deliver another hefty interest rate cut.

Most Wall Street economists anticipate the Fed will lower its benchmark funds rate by half a percentage point to four percent, but stronger-than-expected U.S. economic data late last week raised speculation of a smaller quarter-point cut.

Profit-taking was behind the fall in the technology laden Nasdaq Composite Index on Monday. It closed down 25.51 points or 1.21 percent to end at 2,081.92.

The blue-chip Dow Jones Industrial average rose 56.02 points or 0.52 percent to finish at 10,877.33.

In Hong Kong, the equity market advanced marginally, led by modest gains in banking giant HSBC Holdings as market talk of it possibly making an expensive takeover receded.

Also posting moderate gains were property groups ahead of the widely expected U.S. rate cut.

At 0617 GMT (1.17 p.m. Jakarta time) the Hang Seng Index was up 0.28 percent at 13,295.79.

A move lower in Hynix Semiconductor on profit-taking following a recent run-up and selling pressure on index-heavyweight Samsung Electronics in line with U.S. chip stocks on Monday pushed Korean stocks into negative territory in subdued trading.

The Korea Composite Stock Price Index (KOSPI) closed down 0.48 percent at 581.30.

Taiwan shares were weighed down by weakness in the heavily weighted electronics stocks. The benchmark TAIEX closed down 0.34 percent at 5,158.79.

Indonesian shares ended higher on late buying in shares of cigarette maker Gudang Garam and bellwether Telkom, dealers said.

However, trade was volatile and market participants said overall sentiment was poor amid fears the rupiah may weaken further against the U.S dollar.

The JSX Composite Index ended up 0.7 percent, or 2.594 points, at 370.876. The market had opened 0.3 percent lower.

Shares in the Philippines closed sharply lower contrary to the relatively neutral regional trend as investors turned wary over the government's prospects of getting a strong pro-administration majority in the Senate following Monday's legislative and local elections.

The main index closed down 1.81 percent at 1,457.97.