Asian markets fall

Wednesday, 27 April 2011 00:06 - - {{hitsCtrl.values.hits}}

KUALA LUMPUR: Key regional markets succumbed to profit taking on Tuesday, April 26, ahead of the Federal Reserve meeting this week, with Japan’s Nikkei 225 falling almost 1.3%, as investors stayed on the sidelines to await the outcome of the meeting.

The FBM KLCI shed 1.20 points to 1,522.85 at 12.30pm, weighed by losses due to profit taking at blue chip stocks.

Losers beat gainers by 435 to 171, while 311 counters traded unchanged. Volume was 500.05 million shares valued at RM527.97 million.

The ringgit weakened 0.12% to 2.9955 versus the US dollar; crude palm oil for the third month delivery fell RM54 per tonne to RM3,306, crude oil lost US$1.08 per barrel to US$111.20 while gold slumped US$11 an ounce to US$1,496.23.

Asian shares pulled back from recent three-year peaks before this week’s Federal Reserve meeting where investors will hunt for clues on when it plans to exit ultra-easy monetary policy, according to Reuters.

At the regional markets, Japan’s Nikkei 225 fell 1.29% to 9,547.55, Hong Kong’s Hang Seng Index lost 1.13% to 23,865.91, the Shanghai Composite Index was down 0.92% to 2,937.73, Taiwan’s Taiex fell 0.60% to 8,897.11, Singapore’s Straits Times Index fell 0.38% to 3,175.69 and South Korea’s Kospi was down 0.34% to 2,208.56.

Oil gains ahead of Fed meeting

LONDON (Reuters) - Oil edged up from earlier losses on Tuesday in low trading volumes as some investors took advantage of the dip to buy, though gains were limited ahead of a closely watched U.S. Federal Reserve policy meeting.

Prices were also capped by the chief of Saudi Arabia ‘s state oil company comment that the world’s top oil exporter was concerned about the economic impact of expensive oil.

By 1051 GMT, North Sea Brent crude futures were trading 20 cents up at $123.86 a barrel, having fallen to as low as $122.66.

U.S. crude futures were trading 27 cents lower at $112.01 a barrel, having dropped by more than $1. On Monday, U.S. crude had hit $113.48, the highest since September 2008.

Trading volumes were moderate for both contracts.

Analysts said that some investors would rely on technical indicators to make profits from short-term trading and that the price range might remain very narrow.

“This week, it will be all about the Fed meeting. Volume and volatility will come back after the meeting,” said Olivier Jakob with Petromatrix in Switzerland.

Investors were focussed on the meeting, due to start later on Tuesday, particularly since Ben Bernanke is to give the first regularly scheduled news briefing by a Fed chief in the bank’s 97-year history following its decision on Wednesday.

Oil prices have surged this year due to conflict in oil producer Libya and unrest in other countries in North Africa and the Middle East.

Gold, silver retreat from records

LONDON (Reuters) - Silver and gold tumbled on Tuesday as investors sold on uncertainty about the direction of monetary policy in the United States, but a softer dollar helped support prices and sentiment.

Spot silver ceded nearly 5 percent to $44.61 an ounce after touching $49.31 an ounce on Monday, within reach of $49.48 hit in January 1980

It was bid at $45.77 an ounce at 1143 GMT from $46.90 late in New York on Monday and is heading for its biggest daily loss since March 15.