Asian stocks lower amid hopes for Fed action

TOKYO, Oct 12 (AP): Asian stock markets fell Tuesday, but losses were limited as investors remained hopeful that the US Federal Reserve would take further action to bolster the US economy.

While Asian shares climbed earlier, investors turned cautious, taking a wait-and-see stance ahead of the release of corporate earnings this week from top US firms including Intel Corp, JP Morgan Chase & Co and General Electric Co.

Japan's benchmark Nikkei 225 stock index fell 84.49 points, or 0.9 per cent, to 9,504.39 in the morning session.

South Korea's Kospi slipped 1.2 per cent to 1,866.03. Australia's S&P/ASX 200 was down 1.3 per cent at 4,708.40.

Elsewhere, Hong Kong's Hang Seng index declined 0.2 per cent to 23,161.21. The Shanghai Composite Index shed 0.4 per cent to 2,795.85. Markets in New Zealand, Malaysia, Singapore and Taiwan all declined.

In New York overnight, the Dow Jones Industrial Average edged up 3.86 points, or 0.04 per cent, to close at 11,010.34 Monday.

Global stock markets have risen on expectations that the US central bank will introduce fresh measures to spur a recovery in the world's No 1 economy at the conclusion of its next rate-setting meeting on Nov 3.

The Fed is widely expected to announce its second round of so-called quantitative easing, which would involve the purchase of financial assets from banks in an attempt to further drive down rates on mortgages, corporate loans and other debt in a bid to bolster economic activity.

In currencies, the dollar rose to 82.13 yen from 82.05 yen in London late Monday. The euro fell to $1.3864 from $1.3890 in London.

Benchmark oil for November delivery lost 45 cents to settle at $82.21 a barrel Monday on the New York Mercantile Exchange.