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Fed says “no” to new stimulus, sending Asian stocks down

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Looking to the United State to offset Europe's spiraling economic fortunes, investors sent stocks across the Asia-Pacific down after the Federal Reserve declined to take steps to boost the American economy.

On Tuesday, the Fed's policy committee announced there would be no new stimulus measures because it "continues to expect a moderate pace of economic growth over coming quarters," it said in a statement.

Singaporean shares ( EWS , quote ) fell 0.45%, Japanese shares ( EWJ , quote ) were down 0.54%, Chinese shares ( YAO , quote ) closed down 0.77%, Australian stocks ( EWA , quote ) dipped 1.20% and South Korean shares ( EWY , quote ) fell 1.38%.

Miners remained under pressure, as shares of Australia's BHP Billiton ( BHP , quote ) and Whitehaven Coal fell 0.3% and 1.8%, respectively. Rio Tinto ( RIO , quote ), however, defied the trend, with shares climbing 0.6% following news that an independent arbitrator has approved its purchase of a majority stake in the Canadian miner Ivanhoe Mines.

South Korean electronics firms likewise took a hit, with Samsung shares falling 1% and LG ( LPL , quote ) declining 1.3%.

Stocks of Olympus, which had remained buoyant even as the Japanese firm remains under investigation for fraudulent bookkeeping, fell 4.1% after the camera manufacturer revealed a $1.1 billion shortfall as it filed five years' worth of corrected statements.

China's yuan appreciated 0.08% to 6.3701 against the dollar. The British pound rose 0.12% to $1.5497 by Wednesday morning.

The euro, meanwhile, hit an 11-month low against the dollar, dipping 0.32% to $1.2987 amid growing pessimism about Europe's debt crisis.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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