June 28, 2006	Wednesday	Jumadi-ul-Sani 1, 1427

HONG KONG, June 27: Asian stocks were mostly firmer on Tuesday in subdued trade, with modest Wall Street gains providing some support as investors waited for an expected US Federal Reserve interest rate hike later in the week, dealers said.

They said there were no fresh leads to go on, leaving the market to churn over speculation about what the Fed will do and say at the end of its Wednesday-Thursday meeting.

There is hardly any doubt the Fed will hike rates another 25 basis points to 5.25 per cent so the real question is whether it will move again in August and perhaps beyond as the markets try to get a solid fix on monetary policy.

However, since the Fed's position is that policy depends on incoming data, it seems likely that investors will continue to be whiplashed by any figures coming out on the US state of the economy.

On the day, Tokyo added just 0.13 per cent, with the market firmly on Fed watch while Hong Kong slipped 0.19 per cent.

TOKYO: Japanese share prices inched up 0.13 per cent as the market opted to wait for a closely watched US Federal Reserve decision on interest rates later this week, dealers said.

Gains led declines 869 to 688, with 131 stocks unchanged.

“Investors were unwilling to make aggressive bets before the FOMC meeting,”said Hiroichi Nishi, equity chief at Nikko Cordial Securities Inc.

HONG KONG: Hong Kong share prices closed 0.19 per cent lower, reversing modest morning gains in late trade ahead of the expiry of the June futures contracts on Thursday, dealers said.

SYDNEY: Australian share prices closed 0.69 per cent higher as investors bought resource and energy stocks after metal and oil prices rose strongly overnight, dealers said.

SINGAPORE: Singapore share prices closed 0.44 per cent lower as investors traded cautiously ahead of a US Federal Reserve policy meeting beginning Wednesday, dealers said.

KUALA LUMPUR: Malaysian share prices closed 0.36 per cent higher with institutional investors entering the market to hunt for bargains following recent declines, dealers said.

JAKARTA: Indonesian share prices closed slightly firmer in cautious trade although a technical rebound in some major stocks allowed the market to end in positive territory, dealers said.

WELLINGTON: New Zealand share prices closed 0.71 per cent higher, following rises in most of the leading stocks except for Telecom which announced the split of its retail and wholesale businesses, dealers said.

MUMBAI: Indian share prices closed 1.08 per cent higher in volatile trade as overseas funds bought into software and pharamecutical stocks, dealers said.—AFP