Asia stocks swing between gains and losses; Nikkei ends up 0.1%

Investing.com - Asian stock markets swung between modest gains and losses on Tuesday, as investors were hesitant to extend a recent rally amid speculation over an earlier-than-expected end to the Federal Reserve’s quantitative easing program.

During late Asian trade, Hong Kong's Hang Seng Index was down 0.5%, Australia’s ASX/200 Index ended 0.6% higher, while Japan’s Nikkei 225 Index eased up 0.1%.

U.S. equities ended lower on Monday amid expectations the Fed will wind down its stimulus program, citing indications of an improving U.S. economic outlook.

In Tokyo, the Nikkei hovered close to the highest level since December 2007 as the Bank of Japan kicked off a two-day policy meeting.

In comments made Monday, Japanese Economy Minister Akira Amari said the rapidly depreciating yen could harm the world’s third-largest economy and that it is the responsibility of the government there to prevent that from happening.

Meanwhile, in Hong Kong, the Hang Seng eased off the previous session’s three-month high as financial sector stocks came under pressure.

Industrial and Commercial Bank of China saw shares slump 1.8% after Goldman Sachs sold its remaining stake in the giant Chinese bank for about USD1.12 billion.

Elsewhere, in Australia, the benchmark ASX/200 Index edged mildly lower but remained close to a five-year high.

The big four banks were mostly lower, with Australia's top lender, the Commonwealth Bank of Australia falling the most, down 1.4%.

Looking ahead, European stock market futures pointed to a modestly lower open.

The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.1%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a flat open.  

Investors remained cautious ahead of Fed Chairman Ben Bernanke’s testimony at the U.S. Joint Economic Committee and the minutes of the Fed’s most recent policy meeting, both due Wednesday.