HONG KONG: Asian markets slipped yesterday after the United States Federal Reserve (Fed) kept its stimulus programme, known as QE3, unchanged but gave a rosier-than-expected summary of the economy that fuelled expectations it will soon start winding it down.
While the central bank's decision to keep the US$85 billion-a-month scheme in place was widely expected, the upbeat outlook provided strong support for the dollar.
Tokyo shed 1.20 per cent, or 174.41 points, to end at 14,327.94, Sydney eased 0.10 per cent, or 5.4 points, to 5,425.5 and Seoul tumbled 1.43 per cent, or 29.49 points, to 2,030.09, while Shanghai fell 0.87 per cent, or 18.85 points, to 2,141.61.
After a closely watched two-day policy meeting, the Fed said on Wednesday it would hold steady on its bond-buying programme as it awaits further signs the US economy is strong enough to stand on its own feet.
Policymakers made no reference to the potential impact of October's government shutdown and did not hint at future plans for the stimulus.
However, analysts noted the bank did not downgrade its outlook from earlier statements and some suggested it could begin to reel in the scheme as early as December.
In other markets:
* Taipei fell 0.18 per cent, or 15 points, to 8,450.06. Chunghwa Telecom appreciated by 0.21 per cent to T$94.6 while Hon Hai Precision Industry Co fell 0.67 per cent to T$74.5.
* Wellington rose 0.86 per cent, or 41.75 points, to close at 4,909.73.
* Manila closed 0.18 per cent lower, giving up 11.83 points to 6,585.38. Philippine Long Distance Telephone added 0.35 per cent to 2,870 pesos and Ayala Corp was up 0.25 per cent at 603 pesos.
* Mumbai rose 0.62 per cent, or 130.55 points, to a new record close of 21,164.52 points. State-run Bank of India rose 21.26 per cent to 209.96 rupees while steel producer Tata Steel rose 2.45 per cent to close at 334.4 rupees.
* Bangkok jumped 0.82 per cent, or 11.76 points, to 1,442.88. Coal producer Banpu rose 2.65 per cent to 29 baht, while Airport Authorities of Thailand fell 0.47 per cent to 212 baht.
* Jakarta closed down 1.40 per cent, or 64.25 points, at 4,510.63. Aneka Tambang gained 2.56 per cent to 1,600 rupiah, while BNI depreciated by 0.52 per cent to 4,800 rupiah. AFP