HONG KONG: Asian markets were mixed Tuesday on a second straight day of cautious trading before a much-anticipated meeting of the US Federal Reserve later in the day.
The main impetus for regional markets was a jump on the Dow in New York after a US think-tank revealed that the world's biggest economy exited recession more than a year ago.
Tokyo, which was closed Monday for a public holiday, ended 0.25 percent, or 23.98 points, lower at 9,602.11 and Sydney edged down 0.30 percent, or 13.8 points, to 4,617.3.
Shanghai slipped 0.27 percent as dealers trimmed their positions ahead of a three-day public holiday.
But Hong Kong added 0.12 percent by the break to pass the 22,000 mark for the first time since April 15. Singapore gained 0.14 percent.
Traders were looking to the Fed policy meeting, which although expected to see interest rates kept at super-low levels will give an insight into the state of the US economy.
Many bet the Fed is unlikely to take more easing measures until the United States unveils negative data. Such easing measures would pressure the dollar.
"We suspect it will take further clear deterioration in US economic data for the Fed to consider additional quantitative easing measures," Mike Jones, currency strategist at the Bank of New Zealand, told Dow Jones Newswires.
"As such, there is unlikely to be much change in the Fed's language. If we're right, a mild bounce in US bond yields and the US dollar could be in the offing," he said.
Currency markets were also relatively quiet ahead of Tuesday's meeting.
The dollar stood at 85.55 yen in Tokyo morning trade, from 85.70 yen in New York Monday.
The greenback has held its ground in the 85-yen range since soaring against the Japanese unit last week after Tokyo intervened in the foreign exchange markets for the first time since 2004.
The euro edged up to 1.3095 dollars from 1.3060 and 112.03 yen from 112.00 in New York.
Investors were given some lift after the National Bureau of Economic Research (NBER) said the United States' 18-month recession finally ended in June 2009, ending its longest slump since World War II.
The data helped push the Dow 1.37 percent up to its highest level in four months.
However, sentiment was tempered after the NBER, a non-profit research group recognised as the arbiter of US economic cycles, said growth would continue to be slow for some time.
Mumbai rose 0.70 percent in the morning to pass the key 20,000 mark for the first time since January 2008 as foreign money flows continued to pour into the Asian giant amid confidence in Asia's third biggest economy.
On oil markets New York's main contract, light sweet crude for delivery in October, fell 67 cents to 74.19 dollars a barrel and Brent North Sea crude for November eased nine cents to 79.23 dollars.
Gold opened at 1,278.50-1,279.50 US dollars an ounce in Hong Kong, down from Monday's closing price of 1,282.00-1,283.00.
