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Asia stocks mixed ahead of Fed meeting, German data; Nikkei up 0.57%

Published 08/26/2012, 11:13 PM
Updated 08/26/2012, 11:14 PM
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Investing.com - Asian stocks were mixed to higher as investors bought and sold ahead of the Federal Reserve's annual symposium at Jackson Hole, Wyoming this week, where Fed Chairman Ben Bernanke has announced monetary easing measures in the past.

Concerns a German business confidence report may disappoint tempered gains.

During Asian trading on Monday, Hong Kong's Hang Seng Index was down 0.17%, Australia's S&P/ASX200 was up 0.30%, while Japan’s Nikkei 225 Index was up 0.57%.

Markets worldwide are keeping a close eye on the Federal Reserve's upcoming Jackson Hole symposium later this week, where Fed Chairman Ben Bernanke has announced monetary easing measures in the past, which weaken the dollar and send stocks climbing worldwide to spur growth.

European Central President Mario Draghi will speak at the event as well, and may offer insight into a long-awaited announcement over a plan to buy sovereign bonds from debt-ridden European countries to lower borrowing costs there.

Such a plan, however, does face obstacles.

The European Central Bank is reportedly drafting proposals to cap yields in eurozone sovereign debt markets, and to do that, it would intervene and buy sovereign bonds from struggling countries.

German officials have suggested that fiscal reform should take priority over monetary action, and Germany's Bundesbank head Jens Weidmann likened such a plan to feeding a drug addiction.

Weidmann compared ECB action to be "addictive like a drug" in a Der Spiegel interview, stoking sentiments that Europe's largest economy continues to oppose such intervention.

A German court is already reviewing the constitutionality of participating in eurozone rescue programs.

Meanwhile Alexander Dobrindt, general secretary of the governing Bavarian Christian Social Union, reportedly told Bild newspaper that Greece would probably not be a member of the eurozone by 2013, reflecting German frustration at assisting other European nations.

German Chancellor Angela Merkel stated Germany policymakers should "weigh their words very carefully."

Investors were also on edge ahead of the release of the Ifo Institute for Economic Research's report on German business climate, a leading indicator of economic health, which was due out later Monday, however, hopes for monetary easing in the U.S. kept stocks trading largely higher.

In Hong Kong, top decliners included CHALCO, down 2.45%, China Life Insurance, down 2.21%, and Ping An, down 2.03%.

In Australia, top gainers included Tatts Group, up 17.24% on strong earnings, art Energy, up 12.50%, and Chorus Ltd., up 6.94%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.08%, while Germany's DAX 30 futures pointed to a gain of 0.01%. Meanwhile in the U.K., FTSE 100 futures indicated a gain of 0.02%.

Dow Jones Industrial Average futures were up 0.08% while the S&P 500 futures were up 0.13%.







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