Summary Eyes are on the release this week of economic indicators from Washington.
HONG KONG (AFP) - Asian markets were mixed on Wednesday, but traders are growing concerned that recent upbeat US data could prompt the Federal Reserve to begin cutting down its stimulus programme this month.
Exporters on Japan's Nikkei suffered as profit-taking hit the dollar, which had been closing in on a six-month high against the yen on Tuesday.
Tokyo tumbled 2.05 percent by the break, Hong Kong slid 0.88 percent and Seoul lost 0.78 percent but Shanghai was up 0.95 percent. Sydney was 0.14 percent up, reversing earlier losses that were fuelled by slowing Australian growth figures.
Eyes are on the release this week of economic indicators from Washington -- with the main focus on Friday's non-farm payrolls data -- which will provide some clarity on the Fed's plans for its $85-billion-a-month bond-buying scheme.
Traders fear a strong set of jobs figures will increase the likelihood of a pullback as early as the bank's next policy meeting in two weeks' time.
Among the other US data due for release this week are third-quarter growth and home sales, while the Fed will open up its Beige book on regional economies.
On Tuesday the Dow fell 0.59 percent and the S&P 500 dipped 0.32 percent -- both having struck record highs last week. The Nasdaq eased 0.20 percent.
"In a return to the good news is bad news theme, international equity markets were sold (Tuesday). Investors responded to solid economic data by worrying about the looming Fed taper programme," CMC Markets chief analyst Ric Spooner in a note, according to Dow Jones Newswires.
In forex trade the dollar dipped to 102.35 yen from 102.48 yen in late New York trade, having peaked at 103.30 yen in Tokyo earlier Tuesday -- its highest since late May.
"With no US economic data (Tuesday), profit-taking drove the dollar lower," said Kathy Lien of BK Asset Management.
The euro eased to 139.05 yen from 139.27 in the US and sharply lower than the five-year high of 139.73 yen touched in Asia Tuesday. The single currency was also at $1.3584, compared with $1.3589 in New York.
Lien also responded to news that China's yuan had overtaken the euro to become the second most-used currency in international trade finance, after the dollar.
"While actual trading in the currency remains miniscule compared to the majors, the use of the currency for trade is increasing rapidly especially as China searches for ways to remove exchange risk and reduce the use of dollars," she said.
The yuan's market share in traditional trade finance reached 8.66 percent in October, passing the euro at 6.64 percent, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) said Tuesday.
In Sydney, the S&P/ASX 200 clawed back earlier losses despite data showing economic growth slowed to 2.3 percent year on year in July-September, below the previous quarter's 2.6 percent rate. Analysts had also expected growth of 2.6 percent in the latest quarter.
In oil trade New York's main contract, West Texas Intermediate for January delivery, was up $1.13 at $97.17 a barrel in mid-morning trade, while Brent North Sea crude for January gained 28 cents to $112.90.
Gold fetched $1,221.20 per ounce at 0230 GMT compared with $1,219.85 on Tuesday.
