Investing.com - Asian stock markets were mostly lower on Wednesday, as lingering uncertainty over the future of the Federal Reserve's stimulus program 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 0.1%, Australia’s ASX/200 Index advanced 0.8%, while Japan’s Nikkei 225 Index was down 0.6%.
Concerns over the future direction of U.S. monetary policy mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
However, Dudley’s comments contrasted with remarks made by St. Louis Fed President James Bullard late last week, who said that a small tapering of bond purchases is still “possible” at the Fed’s October meeting.
In Tokyo, the Nikkei declined as the yen strengthened against the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 98.54, moving off the previous session’s high of 99.16. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Index heavyweights Fast Retailing and Softbank saw shares drop 2.3% and 1.35% respectively.
On the upside, Tokyo Electron saw shares rally 13.2% after it agreed to sell itself to U.S.-based Applied Materials.
Meanwhile, in Hong Kong, the Hang Seng swung edged lower as raw material producers declined on the back of falling commodity.
Jiangxi Copper Company saw shares slump 1.3%.
Elsewhere, in Australia, the ASX/200 Index outperformed regional market to end higher as investors digested domestic earnings report.
Retail giant David Jones saw shares jump 5.3% after reporting stronger-than-expected full-year profit.
Looking ahead, European stock market futures pointed to a modestly lower open.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures shed 0.2%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a loss of 0.2% at the open.
The U.S. was to release data on durable goods orders and new home sales 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 0.1%, Australia’s ASX/200 Index advanced 0.8%, while Japan’s Nikkei 225 Index was down 0.6%.
Concerns over the future direction of U.S. monetary policy mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
However, Dudley’s comments contrasted with remarks made by St. Louis Fed President James Bullard late last week, who said that a small tapering of bond purchases is still “possible” at the Fed’s October meeting.
In Tokyo, the Nikkei declined as the yen strengthened against the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 98.54, moving off the previous session’s high of 99.16. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Index heavyweights Fast Retailing and Softbank saw shares drop 2.3% and 1.35% respectively.
On the upside, Tokyo Electron saw shares rally 13.2% after it agreed to sell itself to U.S.-based Applied Materials.
Meanwhile, in Hong Kong, the Hang Seng swung edged lower as raw material producers declined on the back of falling commodity.
Jiangxi Copper Company saw shares slump 1.3%.
Elsewhere, in Australia, the ASX/200 Index outperformed regional market to end higher as investors digested domestic earnings report.
Retail giant David Jones saw shares jump 5.3% after reporting stronger-than-expected full-year profit.
Looking ahead, European stock market futures pointed to a modestly lower open.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures shed 0.2%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a loss of 0.2% at the open.
The U.S. was to release data on durable goods orders and new home sales later in the trading day.