HSI Dips As Investors Await Fed Signal

Hong Kong stocks finished the trading on Wednesday morning with losses, after three days of gains, with investors focused on the Federal Reserve's latest policy meeting, which ends later in the day.

The Hang Seng Index dipped 0.2 percent, to 24,672.

On the mainland, the Shanghai Composite Index dipped 0.2 percent, to 3,287, while the Shenzhen Composite Index fell 0.9 percent, to 2,186.

Sydney rallied 0.8 percent, while Tokyo and Singapore were in positive territory after swinging through the morning. There were also gains in Wellington and Taipei though Manila and Jakarta were down.

There was little reaction to the World Trade Organisation's decision to uphold a Chinese complaint over additional US tariffs on around US$250 billion of imports, which was slammed by Washington.

But traders were looking to the Fed,with US lawmakers unable to agree on a new stimulus package -- despite the first running out last month, leaving millions of Americans struggling.

The bank "is likely to emphasise a decidedly low rate outlook for years to come to help nurse the world's biggest economy back to health after a record contraction", said Joe Manimbo of Western Union Business Solutions, referring to the second quarter's contraction of more than 30 percent.

But National Australia Bank's Tapas Strickland warned stocks could suffer a pullback if investors were disappointed by the outcome. "There is a risk the market is underwhelmed by the guidance provided by the Fed," he said in a commentary. (AFP)

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