🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

GLOBAL MARKETS-Asia shares gain, gold hits record high

Published 11/25/2009, 02:45 AM
GC
-
CL
-

* Asian shares rise after Fed lifts U.S. growth forecasts

* Dollar hits seven-week low vs yen on exporters selling

* Gold hits record high on weak dollar, media report on India

* European stocks seen gaining after Fed

By Umesh Desai and Yoo Choonsik

HONG KONG/SEOUL, Nov 25 (Reuters) - Asian stocks rose on Wednesday after the Federal Reserve raised U.S. growth forecasts for 2010, while gold struck a record high on a weaker dollar and a media report India was "open to buying" more of the precious metal.

European shares were seen rising on the improved prospects for the U.S. economy and U.S. S&P 500 futures were up 0.3 percent.

The dollar fell to its lowest in seven weeks against the yen and remained under pressure against other major currencies on a combination of factors including expectations that U.S. interest rates will remain low for some time.

Spot gold, which has risen 13 percent so far this month, held above $1,177.4 per ounce after hitting a high of $1,178.3 on a weakening dollar and the India's Financial Chronicle newspaper report.

"The India report has certainly helped to push the momentum in the market today," said Darren Heathcote, head of trading at Investec Australia.

Asian stock markets held firm, with the MSCI index of Asia Pacific stocks traded outside Japan rising 0.81 percent. The Thomson Reuters index of regional shares was up 1.29 percent.

Tokyo stock market's benchmark Nikkei average turned higher after sliding to a four-month intraday low, but the outlook remained murky on doubts about the health of the world's second-largest economy.

As confidence in Japan's economy wanes, financial markets have been reflecting some of that concern with the stock market trailing rest of the region significantly these past few weeks.

WARY EYE ON U.S. CONSUMPTION

"There is uncertainty about the outlook for corporate revenue in an appreciating yen environment," Toshiro Muto, chairman of Daiwa Institute of Research and former Deputy Bank of Japan Governor, told a news conference in Hong Kong.

"There is an observation that Japanese banks are strengthening capital procurement. And third, although not the main reason, changes in the Japanese government have created uncertainty about Japanese policies,"

Pension Funds have been cutting stocks holdings and increasing exposure to foreign holdings to diversify and rebalance their investments.

The MSCI index of non-Japanese Asia Pacific stocks has jumped 66 percent so far this year, whereas the Nikkei average is up just 7 percent over the same period.

Investors in Asian stock markets are maintaining a wary eye on the pace of recovery in U.S. consumption, with shopping activities on this week's so-called black Friday likely to provide an early guide.

Australian stocks and the Aussie dollar were both boosted by upbeat comments from a top central banker which boosted expectations that the central bank could rise rates next week.

U.S. crude oil prices rebounded above $76 a barrel after falling 2 percent in the previous session on disappointing U.S. growth and data showing a big build in crude inventories, both signalling weak demand in the world's top energy user. (Editing by Kazunori Takada) ((choonsik.yoo@thomsonreuters.com; +65 6334 4090; Reuters Messaging: choonsik.yoo.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.