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Most Asian stocks higher after Bernanke comments; Nikkei up 0.54%

Published 07/17/2013, 11:36 PM
Updated 07/17/2013, 11:37 PM
USD/JPY
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Investing.com - Most Asian stocks traded higher Thursday as traders embraced commentary out from Federal Reserve Chairman Ben Bernanke on Wednesday that emphasized the Fed can be flexible with its bond-buying activities.

In Asian trading Thursday, Japan’s Nikkei 225 rose 0.54%. On Wednesday, the minutes of the Bank of Japan’s June meeting said the economy was expected to return to a moderate recovery path and reiterated that the bank’s easing program would remain in place for as long as necessary.

USD/JPY traded higher ahead of another Group of 20 finance ministers meeting. While export-dependent countries ranging from Brazil to Germany to South Korea have been vocal in their disdain for the weak yen, the G-20 as a group has generally taken a cautious but approving tone to the sliding Japanese currency this year.

Hong Kong’s Hang Seng fell 0.23% while the Shanghai Composite dropped 0.57% amid elevated concerns China is encountering more stumbling blocks on the road to bolstering economic growth. The International Monetary Fund said Wednesday China will fall short of the international lending group’s target of 2013 GDP growth of 7.75%.

Australia’s S&P/ASX 200 Index added 0.3% while New Zealand’s NZSE 50 inched up as currencies in both countries traded lower against the greenback.

Earlier Wednesday, Fed Chairman Ben Bernanke said the pace of the central bank’s bond purchases are not a “preset course” In prepared remarks released before his testimony to Congress later in the day, Fed Chair Bernanke said the pace of the central bank’s bond purchases are not a “preset course”.

"I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.

South Korea’s Kospi dropped 0.57%, not surprising given the Fed commentary and the weak yen. Asia’s fourth-largest economy has previously said the two biggest risks it faces are Fed tapering and the falling yen.

Singapore’s Straits Times Index rose 0.37% while S&P 500 shed 0.14% due to some slack technology sector earnings reports delivered after the close of U.S. markets Wednesday.


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