Asian stocks fall as markets eye possible Fed tapering

HONG KONG: Asian markets were mostly down Thursday on signs the US Federal Reserve could soon start tapering off its massive stimulus measures, though Tokyo stocks rose after the yen fell against the dollar.

Markets took their lead from Wall Street where stocks fell after Federal Reserve chief Ben Bernanke told Congress the Fed could scale back stimulus measures if economic conditions improved.

However, with the yen weak against the dollar, Tokyo stocks were up 0.23 percent in morning trade.

Sydney was down 1.81 percent, Seoul was off 0.54 percent, Shanghai was 0.43 percent lower and Hong Kong slid 1.56 percent.

"Fed Chairman Bernanke's remarks caused jitters among global investors," said Peng Yunliang at Shanghai Securities.

Bernanke stressed that current economic conditions did not warrant an end to the Fed's aggressive stimulus measures, and US stocks had rallied during the early part of Bernanke's highly anticipated testimony.

But he told lawmakers the Fed could start reducing its $85 billion-a-month bond-buying programme at one of the next few meetings. Stocks took a decisive lurch with the release of Federal Reserve meeting minutes that showed some officials had discussed curtailing bond purchases as soon as June.