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Asia stocks higher after China trade data, Yellen remarks

Published 02/12/2014, 02:45 AM
Asia stocks rise after China trade data, Yellen comments
USD/JPY
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Investing.com - Asian stock markets were broadly higher on Wednesday, following the release of upbeat Chinese trade data and after Federal Reserve Chair Janet Yellen said that the central bank was likely to continue tapering its monthly bond-buying program in measured steps in future meetings.

During late Asian trade, Hong Kong's Hang Seng Index jumped 1.25%, China’s Shanghai Composite index inched up 0.1%, Australia’s ASX/200 Index closed 1.06% higher, while Japan’s Nikkei 225 Index ended up 0.56%.

Asia was given a positive lead from the U.S., where the Dow Jones Industrial Average and the S&P 500 picked up more than 1% on Tuesday, after Fed Chair Yellen said that the central bank would taper the pace of its asset purchases at future meetings if the economy continued to improve as expected.

She added that the pace of the central bank’s bond purchases are not on a “preset course”, while reiterating that Fed plans to hold interest rates at zero “well past” the time the jobless rate falls below 6.5%.

Meanwhile, data released earlier showed that China’s trade surplus widened to USD31.86 billion last month from a surplus of USD25.6 billion in December, compared to estimates for a surplus of USD23.65 billion.

Chinese exports climbed 10.6% from a year earlier, beating expectations for a 2% increase and following a 4.3% gain in December. Imports rose 10%, compared to forecasts for a 3% increase.

In Tokyo, the Nikkei traded near a two-week high as traders continued to monitor the yen’s movements.

USD/JPY rose to a session high of 102.64, moving off the previous session’s low of 102.06. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Nissan saw shares rise 2% after the automaker reported a 57% increase in net income for the latest quarter. The news boosted other shares in the sector, with Honda climbing 3.3% and Mazda up 2.2%.

Meanwhile, in Australia, the ASX/200 Index ended at a more than two-week high as investors digested a flurry of mostly upbeat corporate earnings.

OZ Mineral saw shares rally 12.6% after reporting better-than-expected earnings for the 12 months through December.

The nation's second-largest property group Stockland tacked on 4.8% after saying net profit rose 5%.

Building materials maker Boral surged 9% after posting a 73% profit increase.

Commonwealth Banking Group added 0.4% after the lender reported a 14% increase in in cash profits.

Elsewhere, in Hong Kong, the Hang Seng rallied to a more than one-week high as financials led gains.

China Construction Bank saw shares rise 1.5%, Industrial and Commercial Bank of China advanced 1.1%, while China Minsheng Bank and Agricultural Bank of China climbed 2% and 3%.

Investors looked ahead to inflation data out of China due on Friday to further gauge the strength of the world’s second largest economy.

Looking ahead, European stock market futures pointed to a mildly higher open. The EURO STOXX 50 futures pointed to a gain of 0.4%, France’s CAC 40 futures added 0.35%, London’s FTSE 100 futures indicated a rise of 0.2%, while Germany's DAX futures picked up 0.35%.

Across the Atlantic, U.S. equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a loss of 0.03%, S&P 500 futures inched up 0.08%, while the Nasdaq 100 futures indicated an increase of 0.09%.

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