Investing.com - Most Asian stock markets rallied on Thursday, with Japanese stocks closing at the highest level since November 2007 after the Federal Reserve announced plans to begin tapering its monthly bond-buying program.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.4%, Australia’s ASX/200 Index ended 2.08% higher, while Japan’s Nikkei 225 Index closed up 1.74%. Asia was given a positive lead from the U.S., where the Dow and S&P 500 closed at all-time highs, while the Nasdaq ended at its highest level in over thirteen years.
The Federal Reserve announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
In Tokyo, the Nikkei rallied to a seven-year high as the yen crashed to a five-year low against the greenback, boosting sentiment.
The dollar surged 1.6% against the yen on Wednesday to hit 104.35, the highest level since October 2008. A weaker yen boosts the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Automakers Mazda and Honda saw shares rise 1.9% and 1.1% respectively, while Sony and Fanuc climbed 2.3% and 4.1%. Index heavyweight Fast Retailing rallied 4.5%.
Meanwhile, in Australia, the ASX/200 Index rallied to a two-week high as gains in the financial sector boosted the benchmark index.
Commonwealth Bank of Australia jumped 1.6%, Westpac Banking Group advanced 2.5%, while National Australia Bank and ANZ Banking Group rose 1.9% and 1.4% respectively.
Elsewhere, in Hong Kong, the Hang Seng edged lower amid ongoing concerns over tightening liquidity conditions. China Construction Bank lost 1.9%, Agricultural Bank of China fell 1.6%, while China Citic Bank slumped 1%.
Looking ahead, European stock market futures pointed to a higher open.
The EURO STOXX 50 futures pointed to a gain of 1% at the open, France’s CAC 40 futures added 0.75%, London’s FTSE 100 futures indicated a gain of 0.85%, while Germany's DAX futures pointed to an increase of 1%.
Across the Atlantic, U.S. equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a loss of 0.2%, S&P 500 futures signaled a 0.25% drop, while the Nasdaq 100 futures indicated a decline of 0.15%.
The U.S. is to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.4%, Australia’s ASX/200 Index ended 2.08% higher, while Japan’s Nikkei 225 Index closed up 1.74%. Asia was given a positive lead from the U.S., where the Dow and S&P 500 closed at all-time highs, while the Nasdaq ended at its highest level in over thirteen years.
The Federal Reserve announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
In Tokyo, the Nikkei rallied to a seven-year high as the yen crashed to a five-year low against the greenback, boosting sentiment.
The dollar surged 1.6% against the yen on Wednesday to hit 104.35, the highest level since October 2008. A weaker yen boosts the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Automakers Mazda and Honda saw shares rise 1.9% and 1.1% respectively, while Sony and Fanuc climbed 2.3% and 4.1%. Index heavyweight Fast Retailing rallied 4.5%.
Meanwhile, in Australia, the ASX/200 Index rallied to a two-week high as gains in the financial sector boosted the benchmark index.
Commonwealth Bank of Australia jumped 1.6%, Westpac Banking Group advanced 2.5%, while National Australia Bank and ANZ Banking Group rose 1.9% and 1.4% respectively.
Elsewhere, in Hong Kong, the Hang Seng edged lower amid ongoing concerns over tightening liquidity conditions. China Construction Bank lost 1.9%, Agricultural Bank of China fell 1.6%, while China Citic Bank slumped 1%.
Looking ahead, European stock market futures pointed to a higher open.
The EURO STOXX 50 futures pointed to a gain of 1% at the open, France’s CAC 40 futures added 0.75%, London’s FTSE 100 futures indicated a gain of 0.85%, while Germany's DAX futures pointed to an increase of 1%.
Across the Atlantic, U.S. equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a loss of 0.2%, S&P 500 futures signaled a 0.25% drop, while the Nasdaq 100 futures indicated a decline of 0.15%.
The U.S. is to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.