Asian shares lower

HONG KONG: Asian markets were mostly lower Monday as dealers bet that the US Federal Reserve will announce a cut in its stimulus programme at its policy meeting this week.

The dollar slipped in Asia as investors adjusted positions before the meeting, while the yen strengthened.

Despite a Bank of Japan survey of business confidence, which jumped to levels not seen since 2007, Tokyo closed down 1.62 percent, or 250.20 points, to 15,152.91.Sydney lost 0.17 percent, or 8.8 points, to end at 5,089.6 and Seoul was flat, edging down 1.76 points to 1,961.15.Shanghai finished 1.60 percent, or 35.21 points, lower at 2,160.86 and Hong Kong gave up 0.56 percent, or 131.30 points, to close at 23,114.66 after a preliminary HSBC survey showed growth in manufacturing activity in China slowed in December.

Trading has largely been driven over the past week by what investors think the Fed will do at its two-day meeting that ends on Wednesday, with opinion split on whether it will begin winding down its bond-buying programme this month or early next year.

A series of upbeat figures from Washington -- including falling unemployment and strong third-quarter growth -- as well as pro-cut comments from Fed officials have made a "taper" seem more likely.

On Wall Street the Dow edged up 0.10 percent and the S&P 500 and Nasdaq were flat Friday despite the approval by the deeply divided US House of Representatives of a budget deal that could avert another government shutdown.