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Asia stocks higher with earnings, FOMC in focus; Nikkei ends up 1.2%

Published 10/30/2013, 03:46 AM
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Investing.com - Asian stock markets were higher on Wednesday, as investors awaited the outcome of the Federal Reserve’s policy meeting later in the session, amid expectations the central bank will maintain its USD85-billion-a-month bond-buying program.

During late Asian trade, Hong Kong's Hang Seng Index climbed 1.25%, Australia’s ASX/200 Index ended 0.28% higher, while Japan’s Nikkei 225 Index closed up 1.23%.

The Fed is scheduled to conclude its two-day policy-meeting later Wednesday, with market analysts expecting the central bank to keep its USD85 billion-a-month asset-purchase program on track in order to safeguard the faltering economic recovery.

The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.

In Tokyo, the Nikkei rallied to a one-week high as the yen weakened against the U.S. dollar, boosting sentiment.

USD/JPY rose to hit a session high of 98.27, moving off the previous session’s low of 97.45. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Index heavyweight Softbank saw shares climb 2.05% after the Nikkei reported the firm was likely to post a record operating profit for the first half of the fiscal year.

Brokerage firms Nomura Holdings and Daiwa Securities saw shares rise 1.35% and 3.8% respectively after both companies reported well-received earnings reports.

On the downside, industrial robot maker Fanuc declined 2.35% after company announced a decline in revenue and a lower-than-expected guidance for the full-year.

Meanwhile, in Hong Kong, the Hang Seng rose to the highest level since October 23 amid speculation policy-makers will introduce fresh stimulus measures to support the economy.

Oil major Sinopec saw shares advance 2.3% after reporting a 20% increase in its third-quarter net profit.

PetroChina shares inched up 0.1% after reporting a 19% increase in net profit over the same period.

Chinese lenders were also higher ahead of their quarterly earnings. Industrial and Commercial Bank of China added 2%, while Agricultural Bank of China climbed 3.3%.

Elsewhere, in Australia, the ASX/200 Index re-approached a five-year high, amid speculation that the Federal Reserve will hold off on scaling back monetary stimulus.

Looking ahead, European stock market futures pointed to a modestly higher open.

The EURO STOXX 50 futures pointed to a gain of 0.1% at the open, France’s CAC 40 futures were little changed, London’s FTSE 100 futures indicated a rise of 0.25%, while Germany's DAX futures pointed to a gain of 0.1% at the open.

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