Asian shares close mixed, awaiting FOMC decision

Asian shares close mixed, awaiting FOMC decision

	Published : Wed, 21 Mar 2007 08:48 By : Agencies Print this Story

HONG KONG (XFN-ASIA) - Shares across the Asia-Pacific region closed mixed, with markets cautious ahead of the US FOMC meeting and lacking a lead from Tokyo, where the market was closed for a holiday today.

Australian shares ended slightly down as investors took a cautious trading approach ahead of the US Federal Reserve meeting, dealers said.

Analysts expect that US interest rates will be held at 5.25 pct but said global markets will closely peruse the Fed's outlook statement on growth, inflation and possible concerns regarding the recent instability within the US housing market.

The S&P/ASX 200 ended down 14.7 points or 0.25 pct at 5,861.9 after trading between a low of 5,860.3 and a high of 5,906.7.

Bell Potter Securities private investment advisor Stuart Smith said caution head of tonight's Federal Reserve meeting slowed the market, and the meeting's outcome should dictate trading over the remainder of the week.

'I think it's a nice healthy market with a bit of profit taking,' he said.

'The markets are trying to decide whether we are in an uptrend or not. Technically I think we are,' Smith added.

Hong Kong shares rebounded in afternoon trade, reversing morning weakness, although dealers said many investors were sidelined ahead of the US Federal Reserve's meeting.

At 3.25 pm the Hang Seng Index was up 166.31 points or 0.86 pct at 19,523.21.

In mainland China, A-shares in Shanghai and Shenzhen closed higher on follow-through buying and fresh inflows of funds, with financial and property stocks in demand, dealers said.

The Shanghai A-share Index was up 26.38 points or 0.83 pct at 3,212.42 and the Shenzhen A-share Index was up 11.44 points or 1.38 pct at 840.96, a new record high.

Seoul shares closed slightly lower, ending a four-day run-up, with investors mostly sidelined ahead of the US rate decision, dealers said.

The downside was limited as foreign investors picked up IT stocks and banks, helping the benchmark index end above 1,440 points, they noted.

The KOSPI index closed down 1.32 points or 0.09 pct at 1,442.85, off a low of 1,435.42 and a high of 1,452.05.

Taipei shares finished mixed in reduced trade as profit-taking pared down some of the gains driven by Wall Street's advance overnight, dealers said.

Investors were unwilling to chase prices higher toward the 7,800 points technical resistance level, preferring to wait for the outcome of the US Federal Reserve's policy meeting before placing further orders, they said.

The weighted index closed up 20.83 points or 0.27 pct at 7,757.03, after moving between 7,746.35 and 7,784.19, on turnover of 85.07 bln twd.