Asian markets mixed as US Fed prepares for meeting

Asian markets were mixed on Tuesday, with traders sitting on the sidelines as they await the US Federal Reserve's plans for its stimulus programme. The dollar enjoyed another positive day, with Wall Street also providing a strong lead thanks to upbeat US housing data. Tokyo's benchmark Nikkei index dropped 0.20 percent, or 25.84 points, to 13,007.28, after jumping 2.73 percent the day before, as the Topix index of all first-section shares rose 0.15 percent, or 1.68 points, to 1,086.40. "The market is due for some profit-taking, but valuations are technically attractive at current price levels, which should provide decent downside support," said SMBC Nikko Securities general manager of equities Hiroichi Nishi. Panasonic slipped 0.53 percent to 743 yen, mobilephone operator SoftBank declined 0.19 percent to 5,240 yen, while Toyota was up 1.75 percent to 5,800 yen. Sony jumped 4.41 percent to 2,036 yen after US billionaire Daniel Loeb said he has upped his stake in the electronics giant. Loeb has repeated his call for Sony to spin off part of its entertainment division, ahead of the firm's annual shareholders meeting on Thursday. Sydney fell 0.24 percent, or 11.5 points, to 4,814.4. But Seoul rose 0.93 percent, or 17.52 points, to 1,900.62. Hong Kong finished flat, edging down 0.02 points to 21225.88 while Shanghai was up 0.14 percent, or 3.07 points, at 2,159.29. Markets have been in turmoil for weeks as investors speculate on whether the Federal Reserve will continue with its $85-billion-a-month quantitative easing programme, which has helped fuel a global stocks rally. The Fed is expected to announce Wednesday after a two-day meeting when or if it intends to begin reeling in the huge bond-buying scheme as the economy shows signs of picking up. The US unit was trading at 95.15 yen in afternoon trade, against 94.67 yen in New York late Monday. However, it is still down around nine percent from its recent peak in late May. The euro bought 12701 yen and $1.3350 compared with 126.52 yen and $1.3363. Oil prices eased. New York's main contract, light sweet crude for delivery in July, fell 17 cents to $97.60 a barrel in the late afternoon and Brent North Sea crude for August delivery lost two cents to $105.56 45. Gold was at $1,380.10 at 0810 GMT from $1,386.40 late Monday. In other markets: -- Taiwan rose 0.23 percent, or 18.13 points, to 8,011.02. Chunghwa Telecom was up 0.83 percent at Tw$96.0 while Taiwan Semiconductor Manufacturing Company was 0.47 percent higher at Tw$106.5. -- Manila closed 2.83 percent higher, gaining 179.36 points to close at 6,518.77. Alliance Global Group rose 3.98 percent to 23.50 pesos while SM Prime Holdings gained 3.04 percent to 16.96 pesos. -- Wellington rose 0.33 percent, or 14.47 points, to 4462.10. Ryman Healthcare added 2.9 percent to NZ$6.30 while Telecom was up 1.3 percent at NZ$2.28.