Asian markets turn in mixed performance ahead of Fed statement; Europe shares gain

Asia stocks mixed before Fed statement; Europe up

HONG KONG — Asian stock markets were mixed Tuesday as investors held back ahead of the U.S. Federal Reserve’s latest assessment of the world’s largest economy. European stocks gained in early trade.

It marked Asia’s third consecutive day of mediocre trade. Oil prices wallowed below $80 a barrel, while the dollar weakened against the yen and the euro.

The U.S. central bank wraps up its policy meeting later Tuesday. Widely expected to keep its key interest rate unchanged at near zero, the Fed will also deliver a policy statement that investors will pore over for clues about the economic recovery and its plans for interest rates.

In Asia, the Bank of Japan was also in focus.

The central bank is expected to maintain its benchmark interest rate at 0.1 percent Wednesday, though there’s growing speculation it will ease policy in other ways, possibly by expanding loan programs and other steps to keep money cheap and available as the world’s second-largest economy heals.

In Europe, markets were higher after the region’s finance ministers agreed to offer financial help for Greece, possibly in the form of bilateral loans, to help ease the country’s worsening debt crisis. They stopped short of divulging details.

As trading got started, markets in Britain and Germany added 0.6 percent, and France’s index rose 0.7 percent.

Earlier in Asia, Tokyo’s Nikkei 225 stock average fell 30.27 points, or 0.3 percent, to 10,721.71.

In Hong Kong, the Hang Seng lost 56.17, or 0.3 percent, to 21,022.93. South Korea’s Kospi was off 1.49, or 0.1 percent, to 1,648.01.

Elsewhere, Shanghai’s market rose 0.5 percent, Australia’s was up 0.3 percent and India’s Sensex gained 0.5 percent.

In currencies, the dollar slipped to 90.38 yen from 90.46 yen. The euro was higher at $1.3679 from $1.3673.

Oil prices fell in Asia, with benchmark crude for April delivery down 20 cents at $79.60. The contract dropped $1.44 overnight.

Wall Street futures were mixed, suggesting a lackluster open in U.S. markets, before the Fed statement.

For months, the Fed has promised to hold rates at historically low levels for an extended period, helping to revive economic growth by freeing up more money for companies and workers to spend.

Thomas Lam, a chief economist at financial services firm OSK-DMG in Singapore, said the central bank was unlikely to substantially change that outlook for interest rates during Tuesday’s meeting.

That’s partly because recent economic gains have yet to translate into more people finding jobs, something the Fed will want to see before shifting its stance. Fed officials are also likely to start with smaller, less noticeable steps to drain extra money from the system before telegraphing their plans to hike rates.

“I don’t think there will be marked changes in the statement,” Lam said. “This isn’t the time yet. The environment still isn’t comfortable enough to change the rhetoric or policies.”

On Wall Street Tuesday, the Dow rose 17.46, or 0.2 percent, to 10,642.15, its highest close since Jan. 19. It was the Dow’s 10th advance in 12 trading days.

The Standard & Poor’s 500 index rose 0.52, or 0.1 percent, to 1,150.51. The index is at its highest level since Oct. 1, 2008.