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Asia stocks mixed after Bernanke; Nikkei climbs to 8-week high

Published 07/18/2013, 02:45 AM
USD/JPY
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Investing.com - Asian stock markets were mixed on Thursday, after Federal Reserve Chairman Ben Bernanke said the central bank expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”

During late Asian trade, Hong Kong's Hang Seng Index was down 0.2%, Australia’s ASX/200 Index ended 0.2% higher, while Japan’s Nikkei 225 Index closed up 1.3%.

In the first day of his semiannual monetary report to the House Financial Services Committee on Wednesday, Bernanke said the central bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.

Bernanke added that the economic recovery was continuing at a moderate pace but reiterated that accommodative monetary policy will still be necessary for the foreseeable future.

Bernanke will testify before the Senate Banking Committee on Thursday.

In Tokyo, the Nikkei ended at the highest level since May 24 as the yen weakened against the U.S. dollar after Bernanke emphasized the Fed can be flexible with its bond-buying activities.

USD/JPY rose to hit a session high of 100.17, moving off Wednesday’s low of 99.03. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Japanese megabanks were higher, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group adding 1%, while Sumitomo Mitsui Financial Group and Mizuno Financial Group advanced 2.2% and 1% respectively.

Meanwhile, in Australia, the benchmark ASX/200 Index inched higher to end just below a one-week high, as lenders led gains.

The big four banks all rose, with National Australia Bank gaining 1%, while ANZ Banking Group and Westpac Banking Group advanced 0.5% and 1%. Commonwealth Bank of Australia tacked on 0.7%.

Newcrest Mining saw shares tumble 4.5% as gold prices extended the previous session’s losses in wake of Bernanke’s comments.

Elsewhere, in Hong Kong, the Hang Seng swung between small gains and losses amid ongoing concerns over a slowdown in Chinese economic growth.

Property developers came under pressure after data released earlier showed that Chinese home prices rose by 6.8% last month, above expectations for 6.0%.

China Overseas Land & Investment lost 1.4%, while China Resources Land fell 2.2%.

Looking ahead, European stock market futures pointed to a modestly lower open.

The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures dipped 0.2%, London’s FTSE 100 futures eased down 0.2%, while Germany's DAX futures pointed to a loss of 0.2% at the open.  

The U.S. was to release the weekly government report on initial jobless claims and data on the Philly Fed manufacturing index later in the trading day.

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