Investing.com - Asian stock markets were broadly higher on Wednesday, amid speculation the Federal Reserve will announce further economic stimulus measures after its monetary policy meeting concludes later in the day.
Investors remained jittery however, as political developments in Greece and Spain’s deteriorating fiscal health remained in focus.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.6%, Australia’s ASX/200 Index added 0.2%, while Japan’s Nikkei 225 Index jumped 1.1%.
The Fed’s two-day meeting concludes later Wednesday, amid growing hopes policy makers will announce measures to stimulate the world’s largest economy.
A growing number of Fed watchers expect the central bank to extend its Operation Twist program, in which it sells short-term bonds to buy long-term ones. The current USD400 billion Twist program is set to expire at the end of June.
Markets continued to monitor developments in Greece, where political leaders were attempting to form a solid coalition government.
Spain’s deteriorating fiscal health remained in focus. Madrid saw short-term borrowing costs rise sharply at an auction of government bonds on Tuesday, as uncertainty over whether the country will need a full sovereign bailout persisted.
In Tokyo, the Nikkei rose on the back of strong gains in financial sector stocks, which benefitted from hopes for Fed action.
Mitsubishi UFJ Financial Group jumped 2.8%, Sumitomo Mitsui Financial Group advanced 2.3%, while investment banks Nomura Holdings and Daiwa Securities rallied 4% and 4.5% respectively.
Shares in exporters advanced on the back of a weaker yen. Canon saw shares gain 1%, Sony climbed 3.5%, while Panasonic tacked on 3.1%.
Shares in Honda added 1.1% after Nomura raised its rating to ‘buy’ from ‘neutral’ and lifted its price target, citing strong finances and earnings structure.
Japanese traders shrugged off a government report showing the nation’s trade deficit widened by a larger-than-expected margin in May, as exports to Western Europe slipped almost 5%.
Meanwhile, shares in Hong Kong were higher, boosted by a 2.4% jump in index heavyweight HSBC Holdings. HSBC, which is Europe’s largest bank, commands a 15% weighting on the Hong Kong benchmark.
Shares in Hong Kong-based exporters performed strongly, with Li & Fung shares adding 2.25% and troubled apparel company Esprit Holdings climbing 2%.
Elsewhere, shares in Australia were mildly higher, as gains were limited by investor profit-taking, after the index rose to a one-month high.
Shares in the media sector were active, amid some takeover chatter. Shares in Consolidated Media Holdings surged 9.75% after News Corp. offered to buy the company for nearly AUD2 billion. News Corp. shares traded 0.65% higher on the news.
Looking ahead, European stock markets looked set to open mildly higher, as investors looked ahead to the conclusion of the Federal Reserve’s policy meeting later in the day, amid speculation over more easing from the central bank.
The EURO STOXX 50 futures pointed to a gain of 0.35% at the open, France’s CAC 40 futures added 0.25%, London’s FTSE 100 futures eased up 0.2%, while Germany's DAX futures pointed to a modest gain of 0.1% at the open.
Later in the day, the Federal Reserve was to announce its benchmark interest rate and publish its rate statement. The announcement was to be followed by a press conference with Fed Chairman Ben Bernanke to discuss the monetary policy decision.
Investors remained jittery however, as political developments in Greece and Spain’s deteriorating fiscal health remained in focus.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.6%, Australia’s ASX/200 Index added 0.2%, while Japan’s Nikkei 225 Index jumped 1.1%.
The Fed’s two-day meeting concludes later Wednesday, amid growing hopes policy makers will announce measures to stimulate the world’s largest economy.
A growing number of Fed watchers expect the central bank to extend its Operation Twist program, in which it sells short-term bonds to buy long-term ones. The current USD400 billion Twist program is set to expire at the end of June.
Markets continued to monitor developments in Greece, where political leaders were attempting to form a solid coalition government.
Spain’s deteriorating fiscal health remained in focus. Madrid saw short-term borrowing costs rise sharply at an auction of government bonds on Tuesday, as uncertainty over whether the country will need a full sovereign bailout persisted.
In Tokyo, the Nikkei rose on the back of strong gains in financial sector stocks, which benefitted from hopes for Fed action.
Mitsubishi UFJ Financial Group jumped 2.8%, Sumitomo Mitsui Financial Group advanced 2.3%, while investment banks Nomura Holdings and Daiwa Securities rallied 4% and 4.5% respectively.
Shares in exporters advanced on the back of a weaker yen. Canon saw shares gain 1%, Sony climbed 3.5%, while Panasonic tacked on 3.1%.
Shares in Honda added 1.1% after Nomura raised its rating to ‘buy’ from ‘neutral’ and lifted its price target, citing strong finances and earnings structure.
Japanese traders shrugged off a government report showing the nation’s trade deficit widened by a larger-than-expected margin in May, as exports to Western Europe slipped almost 5%.
Meanwhile, shares in Hong Kong were higher, boosted by a 2.4% jump in index heavyweight HSBC Holdings. HSBC, which is Europe’s largest bank, commands a 15% weighting on the Hong Kong benchmark.
Shares in Hong Kong-based exporters performed strongly, with Li & Fung shares adding 2.25% and troubled apparel company Esprit Holdings climbing 2%.
Elsewhere, shares in Australia were mildly higher, as gains were limited by investor profit-taking, after the index rose to a one-month high.
Shares in the media sector were active, amid some takeover chatter. Shares in Consolidated Media Holdings surged 9.75% after News Corp. offered to buy the company for nearly AUD2 billion. News Corp. shares traded 0.65% higher on the news.
Looking ahead, European stock markets looked set to open mildly higher, as investors looked ahead to the conclusion of the Federal Reserve’s policy meeting later in the day, amid speculation over more easing from the central bank.
The EURO STOXX 50 futures pointed to a gain of 0.35% at the open, France’s CAC 40 futures added 0.25%, London’s FTSE 100 futures eased up 0.2%, while Germany's DAX futures pointed to a modest gain of 0.1% at the open.
Later in the day, the Federal Reserve was to announce its benchmark interest rate and publish its rate statement. The announcement was to be followed by a press conference with Fed Chairman Ben Bernanke to discuss the monetary policy decision.