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Asia stocks mixed amid U.S. rates uncertainty; Nikkei drops 1.04%

Published 06/09/2010, 04:27 AM
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Investing.com – Asian stocks were mixed on Wednesday amid conflicting signals on the future direction of interest rates from the U.S. Federal Reserve, and ahead of a speech by the European Central Bank president, Jean-Claude Trichet.

Hong Kong's Hang Seng Index was up 1,0%; South Korea's Kospi Composite fell 0.26%; and Japan’s Nikkei 225 Index fell 1.04%.

Australia's S&P/ASX 200 Index closed up 0.11%, after official data showed that Australian home loan approvals declined at a slower than expected pace in April.

The Shanghai Composite Index was the best performer, rising 2.78% as it reversed earlier loses following reports of positive Chinese export and loan growth for May.

Among stocks in focus, shares of Honda were down 2.6% due to a strike that has held up production by Japan’s second largest car manufacturer.

The outlook for U.S. equity markets, meanwhile, was rosy: Dow Jones Industrial Average futures indicated a rise of 0.05%, S&P 500 futures pointed to a rise of 0.11% and Nasdaq 100 futures indicated an increase of 0.01%.
                                                                                   
Later in the day, U.S. Federal Reserve Chairman, Ben Bernanke was due to testify before the House Budget Committee in Washington, D.C., before speaking at an event in Richmond.

Also Wednesday, the Fed was to publish its Beige Book, analysis used by the FOMC in making interest rates decisions.




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