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Asian Shares Drop As FOMC Meets

Asian shares held near one-month lows on Tuesday as investors braced for a possible hawkish shift in the U.S. Federal Reserve's policy stance as the Fed begins a two-day policy meeting later in the day.

The MSCI Asia Pacific Index fell for the ninth straight day dropping 0.1 percent. Nasdaq 100 Index futures were little changed after the U.S. gauge of technology stocks sank 1 percent in New York.

Ten-year Australian notes rose for the first time in six days as the yield on 10-year Treasuries slipped two basis points. Gold and nickel rose at least 0.3 percent.

FOMC officials will meet to review policy Tuesday and investors will be scanning the outcome for clues on the timing of the first U.S. rate hike in more than eight years.

Speculation that the Fed could raise interests sooner and faster than previously expected have rattled many share markets around the global and supported the U.S. dollar.

Wall Street had a mixed session on Monday also after weekend data showed China's factory output in August grew at its slowest pace in nearly six years, raising fears the world's second-largest economy was losing momentum.

The dollar index, which tracks the greenback against a basket of six major rivals, was steady on the day at 84.166 (.DXY), not far from its 14-month peak of 84.519 scaled a week ago.

Cina Coren
About Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.
 

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