Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Asia stocks mixed after Fed pledge; Nikkei sheds 0.4%

Published 01/26/2012, 02:50 AM
UK100
-
FCHI
-
DE40
-
STOXX50
-
JP225
-
HK50
-
HMC
-
SONY
-
0883
-
2318
-
2628
-
HG
-
601988
-
CBKK
-
FTNMX551030
-
0358
-
IEE
-
IFNC
-
Investing.com - Asian stock markets were mixed on Thursday, after the Federal Reserve pledged on Wednesday to keep rates at historically low levels until at least late 2014, a year longer than it had previously stated.

During late Asian trade, Hong Kong's Hang Seng Index rallied 1.5% Japan’s Nikkei 225 Index shed 0.4%, while Australia’s S&P/ASX200 Index remained closed.

Trading in the region was subdued. Markets in Taiwan and mainland Chinese remained closed for the Chinese Lunar New Year, while markets in India and Australia were closed for public holidays.

The Fed’s Open Market Committee said in a statement that economic conditions “are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

The new commitment replaces the statement that economic conditions were likely to stay at the historic low range of 0% to 0.25% until at least mid-2013.

Shares in Hong Kong rallied as investors returned from a long Lunar New Year-holiday, led higher by financials and commodity-linked shares.   

The nation’s largest lender Industrial and Commercial Bank of China saw shares jump 3.2%, China Construction Bank rose 2.1%, while insurers Ping An and China Life surged 3.95% and 4.3% respectively.

Raw material producers contributed to gains, tracking oil and metal prices higher. Zijin Mining saw shares rally 5.3%, Jiangxi Copper Company gained 4.3%, while oil producers CNOOC and Sinopec added 2.1% and 1.5%.

Elsewhere, concerns over disappointing earnings and a stronger yen saw Japanese exporters knock the Nikkei off a three-month high. Consumer electronics giant Sony slipped 1.4%, while automakers Honda and Nissan fell 1% and 1.15% respectively.    

Glassmakers performed poorly after U.S. counterpart Corning posted disappointing fourth quarter earnings results. Nippon Electric Glass tumbled 6.75% and Asahi Glass Company dropped 3.6%.

On the upside, Tokyo Electric Power Company saw shares rise 5.45% on a report the utility plans to take public funds to avoid bankruptcy.

Looking ahead, the outlook for European stock markets was upbeat talks on a debt swap deal between Greece and its creditors were to resume in Athens later in the day.

The EURO STOXX 50 futures pointed to a gain of 0.7%, France’s CAC 40 futures rose 0.6%, London’s FTSE 100 futures added 0.35%, while Germany's DAX futures pointed to an increase of 0.5%.

Later in the day, the U.S. was to release official data on initial jobless claims as well as a report on durable goods orders.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.