U.S. stocks climbed Wednesday on news the Federal Open Market Committee remained committed to keeping low interest rates at least until late 2014, while Bernanke said the central bank was ready to ease monetary policy further if needed.
But some analysts cautioned against being overly bullish for a next round of quantitative easing in the near-term.
"Although the Fed has expressed a willingness to embark of further stimulus, in essence the central bank would need to see a deterioration in growth and weaker inflation to feasibly embark on another round of quantitative easing," said Melbourne-based Christopher Gore, a currency analyst at Go Markets in a note.
Japan's Nikkei Stock Average rose 0.3%, Australia's S&P/ASX 200 added 0.6%, South Korea's Kospi Composite gained 0.3% and New Zealand's NZX-50 was down 0.1%.
Dow Jones Industrial Average futures were down three points in screen trade.
Cyclical plays such as resources and exporters broadly rallied across the region after the Fed reiterated its decision to maintain a low interest rate environment for the next two years.
Rio Tinto gained 1.2% and Santos added 1.6% in Sydney, while Sony climbed 1.1%, Inpex rose 1.0% and Sumitomo Metal Mining tacked on 1.1% in Tokyo. In Seoul, Hyundai Motor rose 1.6% while SK Innovation gained 1.5%.
Some Korean technology stocks also received a boost from Apple Inc's sharp gains Wednesday on its stellar second quarter earnings.
Samsung Electronics added 1.4% while SK Hynix rose 0.9%.
Earnings season was in full swing in Tokyo with Fanuc falling 6.1%, despite posting solid fiscal year earnings, as it stayed cautious over the near-term business outlook. Advantest however, gained 2.9% on continued expectations for an earnings recovery, with the firm due to report fiscal year results after the market's close.
The U.S. dollar remained rangebound against the euro after falling on Fed Chief Bernanke's remarks of more easing measures for the U.S. economy if they are required.
"Although the immediate reaction to the Fed announcement has been muted, we think it is consistent with our view that the (U.S. dollar) will strengthen against lower yielding currencies over the medium term," said Barclays analysts in a note to clients.
The single currency was at $1.3222 against the greenback from $1.3228 late Wednesday in New York, and at Y107.60 versus the Japanese yen from Y107.50. The U.S. dollar was at Y81.37 from Y81.35.
With the FOMC decision out of the way, investors will likely turn their attention to the Bank of Japan's policy-setting meeting on Friday for further cues on the direction of the yen.
Spot gold was at $1,643.90 per troy ounce, down 40 cents from its New York settlement on Wednesday. June Nymex crude oil futures were 10 cents lower at $104.02 per barrel on Globex.
Related Post:
Asian Stocks
- asian stock market ahead of a ECB policy decision february 7 2013
- Asian stocks opened mixed january 28 2013
- IMF said asian economic growth forecast 2013
- asian stock markets drop november 6 2012
- impact Hurricane Sandy on stock market
- Why Asian stock markets down october 24 2012
- asian stock markets october 23 2013
- Asian stock markets down october 22 2012
- Asian stock markets october 5 2012
- Asian stock markets october 3 2012
No comments:
Post a Comment