By Tom Miles
HONG KONG, Jan 30 (Reuters) - Asian markets held steady and
the dollar dipped against the yen ahead of an expected U.S.
interest rate cut on Wednesday, although some investors wagered
the Federal Reserve could opt for a smaller move than
previously thought.
But the outlook beyond the Fed decision, which is expected
at about 1915 GMT, remained murky, with hopes of a U.S.
economic revival offset by a smattering of stocks tumbling anew
on fears of a poor 2008.
By 0233 GMT, MSCI's measure of Asia Pacific stocks
excluding Japan <.MIAPJ0000PUS> was up 0.3 percent, while
Japan's benchmark Nikkei 225 <> had edged 0.1 percent
higher. The Korea Composite Stock Price Index was down 0.5
percent and Australia's benchmark S&P/ASX 200 index was down
0.1 percent.
In Taiwan, the main TAIEX share index <> was up 0.7
percent, extending a 1.2 percent rise in the previous day.
"The market is higher today as foreign investors are
buying, but it will start to see pressure before the long
Chinese New Year holiday as investors are still unsure about
global demand this year, especially in the tech sector," said
John Kuo, who manages $247 million for Fuh Hwa Securities
Investment.
Asia's heavyweight fallers included South Korea's Hyundai
Heavy Industries Co <009540.KS>, the world's top shipbuilder,
and its rivals Daewoo Shipbuilding & Marine Engineering
<042660.KS> and Samsung Heavy Industries Co <010140.KS>.
All three shed more than 5 percent as analysts predicted a
thinner order book.
"Markets are failing to keep up with a firmer Wall Street
as foreign investors keep selling local stocks," said Sung
Jin-kyung, an analyst at Daishin Securities in Seoul.
"I think the Fed will slash rates by half a percentage
point tonight, which will provide relief in the short term. But
again, this is not going to fundamentally change the view of
the U.S. economy. Subsequent macroeconomic data will have to
show the economic stimulus measures are indeed making an
impact."
But Japanese shippers powered up after Nippon Yusen KK
<9101.T>, Japan's biggest, reported nearly doubled fiscal
nine-month earnings and raised its full-year forecast, citing a
surge in bulk carrier freight.
The picture was reversed in the electronics sector, with
Japan's NEC Corp <6701.T> and Kyocera Corp <6971.T> falling
while Korean chipmakers such as Samsung Electronics <005930.KS>
rose, helped by optimism that the chances of a U.S. recession
were receding.
FED WATCH
The Fed is mulling its next step to bolster the U.S.
economy after stunning markets on Jan. 22 with its biggest rate
reduction in more than 23 years -- an emergency move that
brought the benchmark federal funds rate down three-quarters of
a point to 3.5 percent.
Traders had widely expected a 50 basis point cut, but after
stronger-than-expected data on consumer confidence and durable
goods orders on Tuesday, investors scaled back bets on a
half-point move significantly. For more on the Fed, please
click on []
Gold <XAU=> took a pause just below its latest all-time
high of $933 an ounce and oil prices <CLc1> firmed to $92.42 a
barrel as the Fed decision neared.
Japanese government bond futures edged down in early trade
but their losses were limited after Tokyo shares slipped and
weak production data backed expectations for a Bank of Japan
rate cut.
