Asian markets mostly lower as Europe woes drag

HONG KONG: Asian markets mostly fell Wednesday and the euro sat near one-year lows as traders unconvinced by Europe's deal to save their currency were upset by the US Fed's lack of fresh economy-boosting plans.

Tokyo fell 0.56 percent by the break, Hong Kong was 0.17 percent lower, Sydney was flat, Seoul gave up 0.21 percent and Shanghai shed 0.20 percent.

The US Federal Reserve said Tuesday it will hold interest rates for some time to come and that the world's top economy was growing at a moderate level but warned of severe global headwinds.

Despite its concerns over the world outlook it did not unveil any fresh stimulus measures to kickstart growth, disappointing investors who had hoped for even an indication of future plans.

The Fed meeting "was a letdown for the many investors looking for any change in policies," said Avis Wang, strategist at IG Markets in Singapore.

"Traders are likely to be cautious as there was no significant improvement to the situation in Europe," he told Dow Jones Newswires.

Wall Street turned lower, with the Dow Jones Industrial Average off 0.55 percent, the S&P 500 0.87 percent lower and the Nasdaq diving 1.26 percent.

Asian investors were already nervous that last week's deal in Europe, which aims to tighten budgetary rules and more closely integrate members, will not be enough to solve the region's sovereign debt crisis.