Asian stocks mixed on US rate call

Asian stock markets were mixed Tuesday as analysts predicted the US Federal Reserve would cut interest rates to almost zero in a new move to tackle the world economic downturn.Tokyo closed 1.12 percent down and Sydney lost one percent. But Hong Kong was 0.6 percent higher and Seoul's KOSPI added 0.3 percent.
The Federal Open Market Committee (FOMC) was expected to cut its base rate by at least 50 basis points to 0.50 percent, which would be an all-time low, although there were even some pointers to a 0.75 percentage point cut.
"Short term investors maintained a cautious stance ahead of the FOMC's decision on interest rates late Tuesday," one Malaysia dealer told Dow Jones Newswires. "Investors will continue to look for direction from US stocks."
On Wall Street the Dow Jones Industrial Average lost 0.75 percent on Monday while the Nasdaq tumbled 2.1 percent.
Elsewhere, however, "sentiment is quite firm," YK Chan, a fund manager at Phillip Asset Management in Hong Kong, said.
"The trading patterns suggest that big players are patiently accumulating stocks rather than chasing them higher."
When the committee's two-day meeting concludes later Tuesday, "it would be surprising if the Fed were to do anything other than cut the funds rate by 50 basis points," said Ian Shepherdson at High Frequency Economics.
Tumbling Japanese business confidence and new signs of China's slowdown underlined worries in Asia, where falling markets also tracked Wall Street, shaken by a far-reaching fraud case in the United States.
HSBC, Europe's biggest bank, and other major lenders face heavy exposure to an alleged 50 billion dollar pyramid scheme said to have been run by Wall Street investor Bernard Madoff.
TOKYO: Japanese share prices ended 1.12 percent lower.
The Nikkei dropped 96.64 points to 8,568.02. The Topix index of all first section issues lost 18.31 points, or 2.16 percent, to 828.62.
Mizuho Financial fell 3.9 percent to 230,100 yen, Sumitomo Mitsui Financial Group shed 3.7 percent to 339,000 yen, and Mitsubishi UFJ Financial lost 1.7 percent to 508 yen.
Toshiba dropped 1.5 percent to 322 yen after the group said it was slashing production of NAND flash memory chips, which are used in Apple's iPod.
Nippon Steel lost 4.4 percent to 283 yen after a report said Toyota Motor will ask its steel suppliers for a 30 percent price reduction next year.
HONG KONG: Share prices closed 0.6 percent higher.
The benchmark Hang Seng Index was 83.26 points up at 15,130.21. Turnover was light at 40.32 billion Hong Kong dollars (5.17 billion US).
Sun Hung Kai Properties rose 1.1 percent to 66.05 dollars and Cheung Kong gained 0.4 percent to 80.30 dollars.
China Cosco Holdings bucked the uptrend, falling 0.7 percent to 5.61 dollars.
China Construction Bank rose 0.4 percent to 4.50 dollars after falling 2.4 percent Monday.
HSBC was unchanged at 84.20 dollars.
SHANGHAI: Chinese shares closed up 0.54 percent.
The benchmark Shanghai Composite Index rose 10.63 points to 1,975.01 on turnover of 52.8 billion yuan (7.7 billion dollars).
The Shanghai A-share index added 11.14 points, or 0.54 percent, to 2,074.07 on turnover of 52.7 billion yuan, while the Shenzhen A-share index was up 12.02 points, or 1.94 percent, to 633.05 on turnover of 26.8 billion yuan.
Real estate developer China Vanke jumped 5.3 percent to 7.58 yuan while Poly Real Estate ended up 7.3 percent at 18.34 yuan. SAIC Motor closed up 2.0 percent to 6.19 yuan.
Air China fell 4.1 percent to 4.49 yuan and China Eastern Airlines was off 3.9 percent at 4.17 yuan, after each saw rises last week.
SEOUL: South Korean shares closed 0.3 percent higher.
The KOSPI index ended up 3.37 points at 1,161.56. Volume was 618.36 million shares worth 6.71 trillion won (4.96 billion dollars).
Hyundai Motor added 5.56 percent to 47,500 won. Its affiliate Kia Motors rose 13.59 percent to end at 8,190 won.
Woori Finance Holdings jumped 4.75 percent to 7,500 won and KB Financial Group surged 3.48 percent to 34,150 won. Industrial Bank of Korea added 5.11 percent to 8,850 won.
Samsung Electronics shed 3.18 percent to 457,000 won. LG Electronics fell 2.26 percent to 82,100 won but Hynix Semiconductor rose 9.2 percent to 6,980 won.
SINGAPORE: Singapore shares closed 0.41 percent higher.
The blue-chip Straits Times Index rose 7.33 points to 1,782.09 on thin volume of 789 million shares worth 643 million dollars (436 million US).
Among key losers, shipping firm Neptune Orient Lines fell five cents to 1.21 Singapore dollars, while property play CapitaLand dropped nine cents to 2.76.
Singapore Airlines rose 34 cents to 11.40.
Banks closed mixed, with DBS down 14 cents to 9.96, UOB unchanged at 13.28 and OCBC up 12 cents at 5.32.
Agribusiness giant Wilmar International finished a penny higher at 2.90.
KUALA LUMPUR: Malaysian shares closed 1.0 percent higher.
The Kuala Lumpur Composite Index gained 8.33 points to close the day at 854.80. Turnover was 301.66 million shares valued at 344.71 million ringgit (98 million dollars).
Ranhill gained 9.4 percent at 76 sen, Bumiputra-Commerce rose 1.7 percent at 5.95 and Public Bank added 1.2 percent at 8.40.
Petronas Gas rose 3.2 percent at 9.80 ringgit.
Astro fell 3.5 percent at 2.22, IOI Property was down 1.9 percent at 2.06 and KFC lost 1.4 percent at 7.05.
BANGKOK: Thai share prices closed 1.89 percent higher.
The Stock Exchange of Thailand (SET) composite index rose 8.25 points to close at 445.31 while the bluechip SET-50 index gained 6.50 points to 315.26 points.
Turnover was 5.0 billion shares worth 21.58 billion baht (621.06 million dollars).
energy firm PTT Plc rose 3.00 baht to close at 180.00 baht while its subsidiary PTT Exploration and Production gained 1.00 to 110.00.
Another leading energy firm, Banpu, advanced 6.00 to 226.00.
The country's biggest lender Bangkok Bank rose 2.00 to 72.00.
JAKARTA: Indonesian shares dropped 1.2 percent.
The Jakarta Composite Index slipped 16.44 points to 1,342.84 in thin volume.
Gas distributor Gas Negara fell 5.4 percent to 2,200 rupiah, nickel miner Inco shed 2.8 percent to 2,100 and its rival Antam dropped 5.0 percent to 1,140 on profit taking.
MANILA: Philippine share prices closed 1.2 percent lower.
The composite index fell 23.94 points to 1,889.32, while the all-shares index fell 12.9 percent to 1,196.96 points. Volume reached 519 million shares worth 1.71 billion pesos (36.12 million dollars).
Philippine Long Distance Telephone fell 3.7 percent to 2,105 pesos.
MUMBAI: Indian shares rose 1.47 percent.
The benchmark 30-share Sensex index rose 144.59 points to 9,976.78.