Updated on
Summary Tokyo, Hong Kong, Sydney, Seoul and Shanghai fell.
Asian markets dipped Tuesday following losses on Wall Street as dealers await a meeting of the US Federal Reserve policy committee hoping for a fresh round of stimulus measures.Attention is also on Germany, where a court is due to rule on the constitutional legality of Berlin taking part in a rescue fund set up to support under-pressure countries.Tokyo fell 0.89 percent, Hong Kong lost 0.35 percent, Sydney was 0.26 percent lower, Seoul eased 0.32 percent and Shanghai dipped 0.35 percent.Euphoria has eased after Fridays announcement from the European Central Bank that it will buy the sovereign bonds of debt-hit nations.As global markets anticipated a rapid international rescue for Spain, the eurozones fourth-biggest economy, Prime Minister Mariano Rajoy refused to be rushed into a deal that dictates spending cuts or touches old-age pensions.The Feds meeting has now become the main focus with hopes that Fed chief Ben Bernanke will unveil a third round of bond-buying, or quantitative easing, to kickstart the US economy, which has seen a stuttering recovery from the global downturn.Those expectations were given more impetus Friday following a disappointing set of job figures.With dealers taking a wait-and-see approach, Wall Street tacked back on Monday. The Dow finished down 0.39 percent, the S&P 500 dropped 0.61 percent and the Nasdaq shed 1.03 percent.Market caution also seeped through to the foreign exchange market, where the euro retreated from recent highs.The European unit bought 99.83 yen, compared with 99.86 yen late Monday in New York, while it also fetched $1.2762 compared with $1.2758 in US trade.The single currency had jumped to 100.21 yen and $1.2811 in New York Friday.In Asia on Tuesday the dollar was at 78.25 yen, from 78.27 yen.German judges are due Wednesday to rule on whether the eurozones 500-billion-euro ($640-billion) rescue fund, the European Stability Mechanism (ESM) and the EU fiscal pact are compatible with the countrys constitution.The verdict is the last legal hurdle for the ESM before it can come into effect. While the verdict is expected to be positive, there are fears a decision against it could blow the whole eurozone project apart.New Yorks main contract, light sweet crude for delivery in October, fell 35 cents to $96.19 a barrel and Brent North Sea crude for October was 27 cents lower at $114.54.Gold was at $1,730.60 at 0215 GMT compared with $1,732.83 on Monday.
