Asian Markets Outside Australia Open Higher Ahead of Fed Meeting

Most Asian markets opened higher on Tuesday after China's central bank injected funds into the money markets for the first time since February. However, market participants exercised caution ahead of the US Federal Reserve's policy decision later this week.

The Japanese Nikkei finished 1.53% higher or 208.69 points to 13,869.82, boosted by a weaker yen.

Australia's S&P/ASX index finished 0.03% higher or 1.70 points to 5048.00.

The Shanghai Composite index was trading 0.73% higher or 14.35 points to 1,990.65.

Hong Kong's Hang Seng was trading 0.23% higher or 51.16 points to 21,901.31.

South Korea's Kospi finished 0.90% higher or 17.16 points to 1,917.05 points.

Market participants will be tracking the US Federal Reserve's Federal Open Market Committee (FOMC) meet, beginning later in the day. The Fed could provide more clarity on the future pace of US monetary stimulus at the end of the two-day meet.

In China, the government is treading with caution, when it comes to radical reforms, as the world's second largest economy posted lower-than expected economic growth data.

In Japan, industrial production has declined for the first time in five months in June. Government data showed that industrial production declined 3.3% from the previous month. The decline compares to a revised 1.9% gain in May and analysts' expectations for a decline by 1.8%.

Household spending in Asia's third largest economy fell 0.4% from a year earlier, while analysts had expected growth of 1.0%.

In Seoul, government data showed that factory output bounced back 0.4% in June from the previous month. However, output fell 2.6% on an annual basis in June

Wall Street Down

On Wall Street, indices ended lower ahead of the Fed's policy decision and monthly nonfarm payrolls data for July.

The Dow finished 36.86 points lower at 15,521.97, pulled down by Bank of America and Hewlett-Packard. The S&P 500 closed 6.32 points lower at 1,685.33. while the Nasdaq ended 14.02 points lower at 3,599.14.

Company Stock Movements

In Tokyo, exporters stocks benefited from the weak yen. Automobile maker Isuzu Motors gained 3.7%. Kobe Steel shot up 4.9%.

Shipping company Kawasaki Kisen jumped over 6% while rival Mitsui OSK Lines gained 4%. The markets expect both firms to post strong earnings, which could counterbalance higher fuel costs.

Consumer electronics major Sony added 2.6%. The company will put out its earnings update on 1 September.

Sumitomo Mitsui Financial Group reversed early gains and was trading 0.3% higher at the end of the morning session.

Hitachi Construction Machinery fell 5.3%. Rival Komatsu shed 1.2%. Both firms reported lower-than expected results.

Official data released earlier Tuesday showed Japan's industrial production unexpectedly fell a seasonally adjusted 3.3% in June from the level in May. Japanese household spending also declined, though the monthly unemployment rate eased to 3.9% from 4.1%.

In Hong Kong, Yanzhou Coal Mining fell 6.9% in Hong Kong after the company warned that it expected to post a loss for the first half of 2013.

Casino operator Wynn Macau gained 1.7% after it said it expects a higher quarterly profit.

In Shanghai, Yanzhou Coal Mining shed 2.5%. Shares of mid-sized lenders China Minsheng Banking, Pudong Development Bank and China Merchants Bank gained over 2% each.

In Sydney, shares of both Australia & New Zealand Banking Group and National Australia Bank dropped 0.6% each.

Transurban dropped 3.3% after investment bank UBS sold it's 4.8% percent in the Australian toll road developer to domestic institutions.

Woolworths, Australia's biggest retailer by market value fell 1.9% after the retailer reported a modest increase in fourth-quarter sales. Revenue for the three months to June 30 rose by 8.9% to A$14.06bn.

In Seoul, index heavyweight Samsung Electronics inched up 0.5%.

Automaker Kia Motors added 1.8% while rival and part owner Hyundai Motor added 3%.