Updated on
Summary Tokyo was 0.32pc higher, Sydney gained 0.16pc and Hong Kong shed 0.35pc.
Asian markets were mixed in tentative trade Thursday ahead of a meeting of the European Central Bank that investors hope will produce a fresh round of stimulus measures to support the euro.The US Federal Reserves decision to hold off any such moves had little impact on sentiment, analysts said but added that if expectations were not met by the ECB shares could tumble.Tokyo was 0.32 percent higher by the break and Sydney gained 0.16 percent while Hong Kong shed 0.35 percent and Shanghai eased 0.10 percent. Seoul was flat.Stocks have boomed since ECB chief Mario Draghi last week said the bank would do all it could to save the euro, with dealers taking that as a nod to a fresh round of bond purchases to ease the pressure on troubled Spain and Italy.Eyes are now on the banks policy meeting later in the day for some action. But Sydney-based Macquarie Private Wealth division director Martin Lakos said there is still uncertainty on what precisely it will do.Weve heard all the talk from European officials, but the cynics are waiting to see what real policy action transpires, he said. Melbourne-based Chris Gore, currency analyst at Go Markets, said in a note to clients: Mario Draghis pledge to do whatever it takes to preserve the euro has inspired a material shift in sentiment, but if markets walk away unappeased, its likely to spark another bout of top-tier risk aversion.However, those who had hoped for some support measures from the US Fed were left disappointed on Wednesday when the central bank held off for now but said it stood ready to step in when needed.Tim Condon, economist at ING, said in a note that the Feds do-nothing outcome was largely priced-in. He added: There was less pressure on the FOMC because there is more pressure on the ECB.On Wall Street the Dow fell 0.25 percent, the S&P 500 shed 0.29 percent and the Nasdaq dropped 0.66 percent.Underwhelming global manufacturing activity data kept a lid on any gains, with eurozone and British figures at around three-year lows, while there continued to be contraction in China and the United States.On currency markets the euro bought $1.2236 and 95.90 yen in early Asian trade, compared with $1.2223 and 95.91 yen in New York late Wednesday. The dollar was at 78.37 yen against 78.44 yen.After the ECB decision is out of the way markets will focus again on the United States, where payrolls data for July will be released, with investors hoping for a clearer guide as to the state of the worlds top economy.On Wednesday a survey of private firms by ADP showed unemployment rose a better-than-expected 163,000 in July, with growth across all sectors.Oil was down in Asian trade. New Yorks main contract, light sweet crude for delivery in September, shed 12 cents to $88. 79 a barrel and Brent North Sea crude for September delivery fell 14 cents to $105.82.Gold was at $1,602.50 at 0300 GMT, from $1,613.90 on Wednesday.
