Investing.com - Asian stock markets were lower on Tuesday, as ongoing uncertainty over the timing of the Federal Reserve’s expected reduction in monthly bond purchases weighed on appetite for riskier assets.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index declined 0.8%, Australia’s ASX/200 Index ended 0.28% lower, while Japan’s Nikkei 225 Index closed down 0.07% after being closed for a public holiday on Monday.
New York Fed President William Dudley said Monday that a “very accommodative monetary policy” is still needed to support the U.S. economy.
Dudley, who voted against tapering the central bank’s USD85 billion monthly bond buying program last week, added that adjustments to the Fed’s asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
Dudley’s comments added to confusion regarding the duration of the Fed’s stimulus program after St. Louis Fed President James Bullard said last Friday that a small tapering of bond purchases is “possible” at the Fed’s October meeting.
In Tokyo, the Nikkei declined as the yen strengthened against the U.S. dollar, weighing on sentiment.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Honda and Toyota saw shares fall 1% and 0.6% respectively, while Sony and Sharp dropped 1.65% apiece.
Meanwhile, in Hong Kong, the Hang Seng edged lower as raw material producers declined on the back of falling commodity.
Jiangxi Copper Company saw shares slump 2.1%, while Zijin Mining Group and Zhaojin Mining Industry Company lost 1.6% and 1.3% respectively.
Lenders also contributed to losses, with China Construction Bank shares shedding 0.7%, Industrial and Commercial Bank of China falling 0.8% and China Minsheng Bank retreating 1.4%.
Elsewhere, in Australia, the commodity-heavy ASX/200 Index ended modestly lower as miners declined.
BHP Billiton and Rio Tinto saw shares drop 0.65% and 0.75%, while gold miners Newcrest Mining Group and Perseus Mining lost 1% and 1.8%.
Looking ahead, European stock market futures pointed to a modestly higher open.
The EURO STOXX 50 futures pointed to a gain of 0.15% at the open, France’s CAC 40 futures added 0.15%, London’s FTSE 100 futures eased up 0.1%, while Germany's DAX futures pointed to a rise of 0.2% at the open.
The Ifo Institute was to release its closely watched report on German business climate later in the trading day.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index declined 0.8%, Australia’s ASX/200 Index ended 0.28% lower, while Japan’s Nikkei 225 Index closed down 0.07% after being closed for a public holiday on Monday.
New York Fed President William Dudley said Monday that a “very accommodative monetary policy” is still needed to support the U.S. economy.
Dudley, who voted against tapering the central bank’s USD85 billion monthly bond buying program last week, added that adjustments to the Fed’s asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
Dudley’s comments added to confusion regarding the duration of the Fed’s stimulus program after St. Louis Fed President James Bullard said last Friday that a small tapering of bond purchases is “possible” at the Fed’s October meeting.
In Tokyo, the Nikkei declined as the yen strengthened against the U.S. dollar, weighing on sentiment.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Honda and Toyota saw shares fall 1% and 0.6% respectively, while Sony and Sharp dropped 1.65% apiece.
Meanwhile, in Hong Kong, the Hang Seng edged lower as raw material producers declined on the back of falling commodity.
Jiangxi Copper Company saw shares slump 2.1%, while Zijin Mining Group and Zhaojin Mining Industry Company lost 1.6% and 1.3% respectively.
Lenders also contributed to losses, with China Construction Bank shares shedding 0.7%, Industrial and Commercial Bank of China falling 0.8% and China Minsheng Bank retreating 1.4%.
Elsewhere, in Australia, the commodity-heavy ASX/200 Index ended modestly lower as miners declined.
BHP Billiton and Rio Tinto saw shares drop 0.65% and 0.75%, while gold miners Newcrest Mining Group and Perseus Mining lost 1% and 1.8%.
Looking ahead, European stock market futures pointed to a modestly higher open.
The EURO STOXX 50 futures pointed to a gain of 0.15% at the open, France’s CAC 40 futures added 0.15%, London’s FTSE 100 futures eased up 0.1%, while Germany's DAX futures pointed to a rise of 0.2% at the open.
The Ifo Institute was to release its closely watched report on German business climate later in the trading day.