Asia struggles despite US market gains

Asian markets are trading lower as investors weigh up hopes of further action by the Federal Reserve against Moody's downgrade of Japan.

US markets closed up yesterday afternoon as the Jackson Hole meeting at the end of the week draws nearer, with investors again looking to Federal Reserve chairman Ben Bernanke in the hope of further stimulus measures. In Asia, however, an initial rise in shares soon petered out, though reaction to Moody's downgrade of Japanese government debt from Aa2 to Aa3 was muted. Japan's Nikkei was down 1.1% at 8,639 shortly before close, with Hong Kong's Hang Seng also 1.1% lower at 19,660. The dollar is fractionally down against the Japanese currency on the day at 76.57 yen. Earlier, the S&...