HONG KONG, Dec 16: Asian stock markets were mixed on Tuesday as analysts predicted the US Federal Reserve would cut interest rates to almost zero in a new move to tackle the world economic downturn.

Tokyo closed 1.12 per cent down and Sydney lost one per cent. But Hong Kong was 0.6 per cent higher and Seoul’s KOSPI added 0.3 per cent.

The Federal Open Market Committee (FOMC) was expected to cut its base rate by at least 50 basis points to 0.50 per cent, which would be an all-time low, although there were even some pointers to a 0.75 per centage point cut.

Short term investors maintained a cautious stance ahead of the FOMC’s decision on interest rates late Tuesday, one Malaysia dealer told Dow Jones Newswires.

HSBC, Europe’s biggest bank, and other major lenders face heavy exposure to an alleged 50 billion dollar pyramid scheme said to have been run by Wall Street investor Bernard Madoff.

TOKYO: Japanese share prices ended 1.12 per cent lower.

The Nikkei dropped 96.64 points to 8,568.02. The Topix index of all first section issues lost 18.31 points, or 2.16 per cent, to 828.62.

Mizuho Financial fell 3.9 per cent to 230,100 yen, Sumitomo Mitsui Financial Group shed 3.7 per cent to 339,000 yen, and Mitsubishi UFJ Financial lost 1.7 per cent to 508 yen.

Nippon Steel lost 4.4 per cent to 283 yen after a report said Toyota Motor will ask its steel suppliers for a 30 per cent price reduction next year.

HONG KONG: Share prices closed 0.6 per cent higher.

The benchmark Hang Seng Index was 83.26 points up at 15,130.21. Turnover was light at 40.32 billion Hong Kong dollars (5.17 billion US).

Sun Hung Kai Properties rose 1.1 per cent to 66.05 dollars and Cheung Kong gained 0.4 per cent to 80.30 dollars.

SYDNEY: Australian share prices closed down 1.0 per cent.

The benchmark S&P/ASX200 lost 35.2 points to 3,556.2, while the broader All Ordinaries dropped 36.8 points to 3,498.9. A total of 1.25 billion shares worth 4.26 billion dollars (2.85 billion US dollars) changed hands.

BHP Billiton fell 0.8 per cent to 30.64 dollars, Rio Tinto was down 1.8 per cent at 39.20 and Fortescue lost 10 per cent to 2.36. MacArthur Coal fell 22 per cent to 2.70.

SINGAPORE: Singapore shares closed 0.41 per cent higher.

The blue-chip Straits Times Index rose 7.33 points to 1,782.09 on thin volume of 789 million shares worth 643 million dollars (436 million US).

Among key losers, shipping firm Neptune Orient Lines fell five cents to 1.21 Singapore dollars, while property play CapitaLand dropped nine cents to 2.76.

KUALA LUMPUR: Malaysian shares closed 1.0 per cent higher.

The Kuala Lumpur Composite Index gained 8.33 points to close the day at 854.80. Turnover was 301.66 million shares valued at 344.71 million ringgit (98 million dollars).

Ranhill gained 9.4 per cent at 76 sen, Bumiputra-Commerce rose 1.7 per cent at 5.95 and Public Bank added 1.2 per cent at 8.40.

JAKARTA: Indonesian shares dropped 1.2 per cent.

The Jakarta Composite Index slipped 16.44 points to 1,342.84 in thin volume.

Gas distributor Gas Negara fell 5.4 per cent to 2,200 rupiah, nickel miner Inco shed 2.8 per cent to 2,100 and its rival Antam dropped 5.0 per cent to 1,140 on profit taking.

WELLINGTON: New Zealand shares rose 0.70 per cent.

The benchmark NZX-50 index closed 18.65 points higher at 2,695.08 on turnover worth 74.8 million dollars (41.8 million US).

Fletcher Building closed up 17 cents at 5.93 dollars.

Telecom rose four cents to 2.40 dollars and second-ranked Contact Energy added three cents to 6.85.

MUMBAI: Indian shares rose 1.47 per cent. The benchmark 30-share Sensex index rose 144.59 points to 9,976.78.—AFP