  A blue and variable optical counterpart of the X-ray transient XTE J0929-314
was identified on 2002 May 1. We conducted frequent BVRI broadband photometry
on this object using the Mt Canopus 1-m telescope during May and June until it
had faded to below 21'st magnitude. Nearly continuous I band CCD photometry on
2002 May 2, 3 and 4 revealed a ~ 10 % sinusoidal modulation at the binary
period lasting ~ 6 cycles during the latter half of May 2. The phase indicates
that the modulation may be due to a combination of emission by a hot spot on
the disc and X-ray heating of the secondary. The emission generally trended
bluer with B-I decreasing by 0.6 magnitudes during the observations but there
were anomalous changes in colour during the first few days after optical
identification when the I band flux decreased slightly while fluxes in other
bands increased. Spectral analysis of the BVRI broadband photometry show
evidence of a variable excess in the R and I bands. We suggest that this may be
due to synchrotron emission in matter flowing out of the system and note that
similar processes may have been responsible for anomalous V and I band
measurements in 1998 of the persistent millisecond X-ray pulsar SAX
J1808.4-3658.
