Asian markets slip as US Fed prepares for meeting

HONG KONG: Asian markets slipped on Tuesday, with traders sitting on the sidelines as they await the US Federal Reserve's plans for its stimulus programme.

The dollar enjoyed another positive day, with Wall Street also providing a strong lead thanks to upbeat US housing data.

Tokyo slipped 0.70 percent by the break, Hong Kong was 0.88 percent lower, Sydney shed 0.96 percent and Shanghai was 0.20 percent lower while Seoul was flat.

The Fed is expected to announce Wednesday after a two-day meeting when or if it intends to begin reeling in its huge bond-buying scheme -- known as quantitative easing -- as the economy shows signs of picking up.

Markets have been in turmoil for weeks as investors speculate the $85-billion-a-month programme, which has helped fuel a global stocks rally, will be brought to an end soon.

There were more signs of strength in the world's biggest economy on Monday with a confidence index of national home builders hitting a seven-year high as they begin to see demand for new homes picking up pace.