HONG KONG: Asian markets were mixed on Tuesday after a top official at the US Federal Reserve said the bank might announce a small cut in its stimulus programme next week.

With a string of upbeat US data pointing to a pick-up in the economy and boosting confidence, the Japanese yen — considered a haven during uncertainty — came under pressure against the dollar and euro as investors seek out higher-yielding, "riskier" assets.

Tokyo eased 0.36 percent by the break, Hong Kong lost 0.17 percent and Seoul slipped 0.41 percent but Shanghai was flat while Sydney added 0.70 percent.

James Bullard, the president of the Fed's St. Louis branch, said Monday that "a small taper" of the bank's $85 billion a month bond-buying scheme could be on the cards at its December 17-18 policy meeting.

He said "the probability of a reduction in the pace of asset purchases has increased" with evidence of accelerating job gains and the likelihood those advances will continue.

His comments came after the government last week said the unemployment rate had slipped to 7.0 percent in November from 7.3 percent in October, while a healthy 203,000 jobs were created — more than expected.

Days earlier Washington said the economy grew 3.6 percent in the July-September quarter, well above the 3.0 percent predicted by analysts.

The postive numbers have spurred expectations of a "taper" to the stimulus after the Fed had indicated on several occasions it would only do so when the economy showed it was strong enough to stand on its own two feet.

In New York the Dow edged up 0.03 percent, the SandP 500 advanced 0.18 percent to a new record high and the Nasdaq added 0.15 percent.

The brighter outlook in the US economy, along with strong Chinese trade data at the weekend, has boosted confidence, which in turn has pushed the dollar and euro higher.

The dollar bought 103.24 yen in early Tokyo trade, compared with 103.28 yen in New York Monday and hovering just below its five-year highs.

The euro sat at $1.3739 against $1.3737, while it also fetched 141.94 yen from 141.89 yen — levels not seen since late 2008.

On oil markets, New York's main contract, West Texas Intermediate for January delivery, was up eight cents at $97.42 in morning Asian trade while Brent North Sea crude for January was seven cents higher at $109.46.

Gold fetched $1,239.40 per ounce at 0240 GMT compared with $1,228.36 on Monday. -- AFP