Investing.com - Asian stock markets were mostly lower on Wednesday, as investors grew cautious ahead of the release of the minutes of the Federal Reserve’s most recent policy meeting later in the day.
The Federal Reserve’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index inched up 0.3%, Australia’s ASX/200 Index ended 0.84% lower, while Japan’s Nikkei 225 Index closed down 0.33%.
Fed Chairman Ben Bernanke reiterated the central bank’s commitment to highly accommodative monetary policy in comments made at the annual National Economists Club members dinner in Washington on Tuesday.
Bernanke said the Fed would maintain its accommodative monetary policy for as long as needed and would taper its USD85 billion-a-month asset purchase program only when it was sure that improvements in the labor market would continue.
Investors are now turning their attention to the minutes of the Fed’s October policy meeting later in the day for further indications on the future course of U.S. monetary policy.
In Tokyo, the Nikkei ended lower for the second consecutive session as traders continued to monitor movements in the currency market.
The yen strengthened as the Bank of Japan starts a two-day policy board meeting and after trade data showed the October deficit came in wider than expected at JPY1.091 trillion, compared to a forecast of JPY814 billion.
USD/JPY fell to hit a daily low of 99.92, moving off the previous session’s high of 100.24. A stronger yen decreases the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Japanese megabanks were lower, with shares of the nation’s largest lender Mitsubishi UFJ Financial Group shedding 0.8%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group lost 1% and 1.4% respectively.
On the upside, Sharp rallied 7.5% amid speculation it may obtain an equipment manufacturing deal to make copy machines under the Hewlett-Packard brand.
Meanwhile, in Australia, the ASX/200 Index fell to a one-month low as losses in the banking and mining sectors weighed on the benchmark index.
ANZ Banking Group and Westpac Banking Group shed 1.2% and 0.4% respectively, while National Australia Bank and Commonwealth Banking Group slumped 0.8% and 0.7% apiece.
In the mining sector, Fortescue Metals Group dropped 1.5%, while Rio Tinto and BHP Billiton fell 0.7% and 0.9% respectively.
Consulting firm WorleyParsons saw shares plunge 25.6% after warning that its full-year net profit could fall as much as 19% below prior guidance.
Elsewhere, in Hong Kong, the Hang Seng held near the highest level since February as sentiment remained supported after China outlined proposals for a series of broad economic reforms late last week, reinforcing investor confidence in the country.
State-owned companies such as PetroChina and Industrial and Commercial Bank of China climbed 0.9% and 0.6% respectively.
Looking ahead, European stock market futures pointed to a steady open.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures fell 0.1%, London’s FTSE 100 futures indicated a gain of 0.1%, while Germany's DAX futures pointed to a flat open.
Meanwhile in the U.S., equity markets also pointed to a flat open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.02% advance, while the Nasdaq 100 futures indicated a rise of 0.05%.
On Wednesday, the U.S. is to release data on retail sales, consumer inflation, existing home sales and business inventories.
The Federal Reserve’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index inched up 0.3%, Australia’s ASX/200 Index ended 0.84% lower, while Japan’s Nikkei 225 Index closed down 0.33%.
Fed Chairman Ben Bernanke reiterated the central bank’s commitment to highly accommodative monetary policy in comments made at the annual National Economists Club members dinner in Washington on Tuesday.
Bernanke said the Fed would maintain its accommodative monetary policy for as long as needed and would taper its USD85 billion-a-month asset purchase program only when it was sure that improvements in the labor market would continue.
Investors are now turning their attention to the minutes of the Fed’s October policy meeting later in the day for further indications on the future course of U.S. monetary policy.
In Tokyo, the Nikkei ended lower for the second consecutive session as traders continued to monitor movements in the currency market.
The yen strengthened as the Bank of Japan starts a two-day policy board meeting and after trade data showed the October deficit came in wider than expected at JPY1.091 trillion, compared to a forecast of JPY814 billion.
USD/JPY fell to hit a daily low of 99.92, moving off the previous session’s high of 100.24. A stronger yen decreases the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Japanese megabanks were lower, with shares of the nation’s largest lender Mitsubishi UFJ Financial Group shedding 0.8%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group lost 1% and 1.4% respectively.
On the upside, Sharp rallied 7.5% amid speculation it may obtain an equipment manufacturing deal to make copy machines under the Hewlett-Packard brand.
Meanwhile, in Australia, the ASX/200 Index fell to a one-month low as losses in the banking and mining sectors weighed on the benchmark index.
ANZ Banking Group and Westpac Banking Group shed 1.2% and 0.4% respectively, while National Australia Bank and Commonwealth Banking Group slumped 0.8% and 0.7% apiece.
In the mining sector, Fortescue Metals Group dropped 1.5%, while Rio Tinto and BHP Billiton fell 0.7% and 0.9% respectively.
Consulting firm WorleyParsons saw shares plunge 25.6% after warning that its full-year net profit could fall as much as 19% below prior guidance.
Elsewhere, in Hong Kong, the Hang Seng held near the highest level since February as sentiment remained supported after China outlined proposals for a series of broad economic reforms late last week, reinforcing investor confidence in the country.
State-owned companies such as PetroChina and Industrial and Commercial Bank of China climbed 0.9% and 0.6% respectively.
Looking ahead, European stock market futures pointed to a steady open.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures fell 0.1%, London’s FTSE 100 futures indicated a gain of 0.1%, while Germany's DAX futures pointed to a flat open.
Meanwhile in the U.S., equity markets also pointed to a flat open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.02% advance, while the Nasdaq 100 futures indicated a rise of 0.05%.
On Wednesday, the U.S. is to release data on retail sales, consumer inflation, existing home sales and business inventories.