US Fed Tapering Fears Force Asian Markets to Shed Early Gains

Most Asian markets shed early gains on Thursday as concerns surrounding the timing and size of the US Federal Reserve's planned reduction in monetary stimulus weighed on investor sentiment.

The Japanese Nikkei finished 0.26% lower or 37.80 points at 14,387.27.

Australia's S&P/ASX finished 0.15% higher or 8.10 points at 5,242.50.

South Korea's Kospi finished 0.01% higher or 0.21 points at 2,004.06.

India's BSE Sensex was trading 0.70% lower or 140.64 points to 19,856.81.

Hong Kong's Hang Seng was trading flat to 22,937.87.

The Shanghai Composite was trading 0.61% higher or 13.60 points to 2,254.87.

In Japan, core machinery orders remained flat in July, 2013 when compared to June. Analysts polled by the Nikkei newspaper predicted a 2.4% increase in machinery orders, which fell 2.7% the previous month.

Elsewhere, the Bank of Korea left its policy interest rate unchanged at 2.5% and said the Korean economy was improving.

In India, the government will release July factory data and August retail inflation numbers after the stock markets close on 12 September.

In China, addressing an international audience at the World Economic Forum in Dalian on 11 September, Chinese Premier Li Keqiang stated his government remained committed to economic reform.

Li said his government planned to take "gradual and active steps towards market-based interest rates and the exchange rate of the renminbi," and "gradually achieve full convertibility of the renminbi under the capital account". Beijing "will reform financial institutions of various ownerships - in particular we need to further ease market access to open up a broader space for financial institutions of various ownerships to develop their businesses."

In Australia, government data released on 11 September showed the country's unemployment rate shot up to a four-year high of 5.8% in August. Australian firms shed 10,800 workers in August, way below expectations of a 10,000 increase.

Wall Street Mixed

On Wall Street, most indices ended higher on 11 September. The Dow Jones Industrial Average finished 135.54 points higher at 153,26.60, propped up by IBM and Disney.

The S&P 500 closed 5.14 points higher at 1,689.13. However, the Nasdaq ended 4.01 points lower at 3,725.01, pulled down by Apple which finished 5.44% lower.

Company Stock Movements

In Tokyo, energy major Inpex added 2.3%, while rival Japan Petroleum Exploration moved up 0.9%, after New York-traded oil futures logged gains overnight.

Automaker Mitsubishi Motors Corp fell 7% after the Nikkei newspaper said the firm was considering a public share offering.

Consumer electronics major Sharp dropped 6% after the Yomiuri Shimbun reported that it too was eyeing a new share offering and could raise up to $2bn.

Retail major Takashimaya dropped 1.3%, J. Front Retailing was down1%, while Aeon shed 0.6% on a separate Yomiuri Shimbun report that Japan plans to hike sales taxes.

Index heavyweight Fast Retailing bucked the trend and added 1.7%.

In Hong Kong, electric vehicles maker BYD added 3.6% on news that the company can manufacture a high-performance electric sports car.

Luggage-manufacturer Samsonite International gained 1.9%. Retailer Giordano International added1.3% while Esprit Holdings moved up 1.7%. Energy major PetroChina added 1.5%.

FIH Moblie [formerly Foxconn] was down 2%, after its major client Apple dropped 5.44% in New York overnight.

In Shanghai Property developer Gemdale was down 2.1% while Poly Real Estate Group lost 1.5%. Energy major PetroChina shed 0.2%.

In Sydney, media giant News Corp shot up 3.9%. The Dow Jones newswire reported that Southeastern Asset Management had raised its voting stake in the Australian firm to 11.9%.

The money management firm is now the second largest shareholder after Chairman Rupert Murdoch and his family trust, which commands a 39.4% voting stake.

Energy major Oil Search inched up 0.7%.

In Seoul, index heavyweight Samsung Electronics gained 1.1% after rival Apple stock price dropped in the US overnight.