Investing.com - Most Asian stock markets turned higher on Wednesday, as investors reacted to news that U.S. President Barack Obama will announce Janet Yellen as the next head of the Federal Reserve later in the day.
The announcement is scheduled for 3pm ET on Wednesday.
Yellen is perceived as being more likely to maintain the Fed’s current accommodative monetary policy stance.
Sentiment remained weak as a partial U.S. government shutdown dragged on, with few signs of progress towards a resolution ahead of a deadline to avoid a default.
During late Asian trade, Hong Kong's Hang Seng Index declined 0.6%, Australia’s ASX/200 Index ended 0.07% higher, while Japan’s Nikkei 225 Index closed up 1.03%.
Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Lawmakers must raise the USD16.7 trillion debt limit or risk an unprecedented default.
In Tokyo, the Nikkei erased earlier losses to close higher as the yen weakened by 0.6% against the U.S. dollar, boosting sentiment.
USD/JPY rose to hit a session high of 97.45, moving off the previous day’s two-month low of 96.65. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Automakers Toyota and Mazda saw shares climb 3% and 2.5% respectively.
On the downside, index heavyweight Softbank tumbled 5.6% after Citigroup cut its rating on the stock to ‘neutral’.
Meanwhile, in Australia, the ASX/200 Index bounced off the previous session’s four-week low, but gains were limited amid ongoing uncertainty over the U.S. government shutdown and the upcoming debt ceiling debate.
Alumina saw shares gain 1% after U.S. aluminum giant Alcoa reported better than expected third quarter earnings after Tuesday’s closing bell on Wall Street.
Elsewhere, in Hong Kong, the Hang Seng declined after the International Monetary Fund lowered its 2013 growth forecast for China to 7.6% from a previous estimate of 7.8%.
Global growth this year will be 2.9% this year, compared to a previous forecast of 3.1%.
Looking ahead, European stock market futures pointed to a higher open after the White House said President Barack Obama is set to nominate Janet Yellen to head the Federal Reserve.
The EURO STOXX 50 futures pointed to a gain of 0.4% at the open, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures indicated a rise of 0.5%, while Germany's DAX futures pointed to an increase of 0.4% at the open.
Investors were looking ahead to the minutes of the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.
The announcement is scheduled for 3pm ET on Wednesday.
Yellen is perceived as being more likely to maintain the Fed’s current accommodative monetary policy stance.
Sentiment remained weak as a partial U.S. government shutdown dragged on, with few signs of progress towards a resolution ahead of a deadline to avoid a default.
During late Asian trade, Hong Kong's Hang Seng Index declined 0.6%, Australia’s ASX/200 Index ended 0.07% higher, while Japan’s Nikkei 225 Index closed up 1.03%.
Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Lawmakers must raise the USD16.7 trillion debt limit or risk an unprecedented default.
In Tokyo, the Nikkei erased earlier losses to close higher as the yen weakened by 0.6% against the U.S. dollar, boosting sentiment.
USD/JPY rose to hit a session high of 97.45, moving off the previous day’s two-month low of 96.65. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Automakers Toyota and Mazda saw shares climb 3% and 2.5% respectively.
On the downside, index heavyweight Softbank tumbled 5.6% after Citigroup cut its rating on the stock to ‘neutral’.
Meanwhile, in Australia, the ASX/200 Index bounced off the previous session’s four-week low, but gains were limited amid ongoing uncertainty over the U.S. government shutdown and the upcoming debt ceiling debate.
Alumina saw shares gain 1% after U.S. aluminum giant Alcoa reported better than expected third quarter earnings after Tuesday’s closing bell on Wall Street.
Elsewhere, in Hong Kong, the Hang Seng declined after the International Monetary Fund lowered its 2013 growth forecast for China to 7.6% from a previous estimate of 7.8%.
Global growth this year will be 2.9% this year, compared to a previous forecast of 3.1%.
Looking ahead, European stock market futures pointed to a higher open after the White House said President Barack Obama is set to nominate Janet Yellen to head the Federal Reserve.
The EURO STOXX 50 futures pointed to a gain of 0.4% at the open, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures indicated a rise of 0.5%, while Germany's DAX futures pointed to an increase of 0.4% at the open.
Investors were looking ahead to the minutes of the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.