The only exception being the Japanese Nikkei, which was strong and rallied almost 2% in trade. Calm prevailed as far as the other markets were concerned. The Indonesia Jakarta Composite, which has been volatile in the last few trading sessions was trading marginally lower by 29 points, while the Hong Kong's Hang Sang was down 0.32%. The Singapore's Strait Times was trading with marginal gains of 0.32%.

Dealers say that the markets across the globe would get a certain direction once the Fed decides on its QE3 tapering off. Analysts are expecting the tapering to be in the range of $5-10 billion and any amount in excess of the same could lead to a sharp sell-off on markets across the globe.

Particularly vulnerable are the emerging markets with large current account deficit including those like India and Indonesia.

Markets will also closely watch the press conference by the Fed Chairman Ben Bernanke. The Fed's decision would also impact the currency markets. A slower tapering in the range of $5-10 billion would benefit bonds and stocks but is likely to impact the dollar negatively.

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