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Asia stocks hit 2-month high on Fed vow; Nikkei up 1.17%

Published 03/17/2010, 03:59 AM
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Investing.com – Asian shares hit a 2-month high on Wednesday after the U.S. Federal Reserve renewed its pledge to keep interest rates low for an "extended period," and following further monetary policy easing by the Bank of Japan.

South Korea's Kospi Composite Index rose 2.11%; the Shanghai Composite Index gained 1.93%; and Hong Kong's Hang Seng Index was up 1.68%.

Japan’s Nikkei 225 Index gained 1.17% after the Bank of Japan kept its benchmark interest rate at 0.1% and loosened monetary policy following government pressure for action to support the economy.

Australia's S&P/ASX 200 Index rose 1.17%, meanwhile, after the Westpac-Melbourne Institute's leading economic index on Wednesday pointed to above trend growth in the wake of stronger commodity prices, profits and productivity.

Expectations that technology giant Intel Corp would beat current-quarter earnings estimates also lifted Asian stock markets.

The outlook for European markets was also rosy: France’s CAC 40 futures indicated a rise of 0.35%; Germany's DAX futures pointed to an increase of 0.42%; EURO STOXX 50 futures indicated a gain of 0.48%; and Britain's FTSE 100 futures pointed to a rise of 0.46%.

Later in the day, the U.S. Labor Department was set to release key inflation data with the publication of its monthly producer price index.

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