Asian stocks mixed on reports of limited US stimulus
Friday, 29 October 2010
HONG KONG, Oct 28 (AFP): Asian stocks were mixed Thursday as traders weighed a report saying expected monetary easing measures from the United States (US) may not be as big as initially thought.
The news supported the dollar, however, which managed to hold up against the yen after advancing in New York Wednesday.
Tokyo edged 0.06 per cent down by the break and Seoul slipped 0.34 per cent while Shanghai shed 0.23 per cent and Hong Kong was flat.
Singapore rose 0.31 per cent.
The Wall Street Journal said Wednesday that the US Federal Reserve would likely unveil next week a programme to purchase bonds worth "a few hundred billion dollars over several months".
The reported plan to kickstart recovery in the world's biggest economy appeared to be short of expectations among investors for more aggressive purchases of long-term assets, known as quantitative easing (QE).
The Fed, which concludes its two-day policy meeting on Wednesday, will be keeping an eye on gross domestic product figures to be released this week.
The central bank injected more than 1.5 trillion dollars into the markets during the 2008-2009 financial crisis in an effort to support recovery.
Global stocks have been rallying in recent weeks on expectations of a stimulus plan, which has taken a heavy toll on the dollar.
However, the reports pushed the dollar up on Wednesday to end in New York at 81.75 yen. It eased to 81.63 yen in Tokyo morning trade but was well off the 15-year low of 80.41 reached earlier this week.
However, the greenback's gains have also been capped by Japanese exporters selling the unit as they try to cash in on its advances.
"The dollar was holding firm on short-covering" before the US Federal Reserve holds a policy meeting next week, said Daisuke Karakama, market economist at Mizuho Corporate Bank.
Market players "couldn't face the important event with huge short-positions on the dollar," he said, adding Japanese export companies' selling capped the dollar's rise.
Despite the weaker yen the Nikkei stock index slipped as traders sold off resources firms on the back of falling commodities prices.
However, dealers were waiting for the Bank of Japan's outlook for consumer prices and details of its asset-purchasing scheme later Thursday as the central bank holds a policy meeting.
The euro changed hands at 1.3779 dollars, compared with 1.3767 dollars in New York. The single currency was flat at 112.52 yen.
The Journal report was tempered as dealers kept an eye on the upcoming corporate earnings season, with hopes for a strong batch of figures.
Sydney was 0.82 per cent higher, boosted by a strong full-year earnings report from ANZ bank.
The Melbourne-based lender said annual net profits surged 53 per cent to 4.50 billion Australian dollars (4.37 billion US), adding to a rosy picture for the sector in prosperous Australia as bad debts ease.
The announcement came a day after rival NAB posted a 63 per cent net profit rise.
The news supported the dollar, however, which managed to hold up against the yen after advancing in New York Wednesday.
Tokyo edged 0.06 per cent down by the break and Seoul slipped 0.34 per cent while Shanghai shed 0.23 per cent and Hong Kong was flat.
Singapore rose 0.31 per cent.
The Wall Street Journal said Wednesday that the US Federal Reserve would likely unveil next week a programme to purchase bonds worth "a few hundred billion dollars over several months".
The reported plan to kickstart recovery in the world's biggest economy appeared to be short of expectations among investors for more aggressive purchases of long-term assets, known as quantitative easing (QE).
The Fed, which concludes its two-day policy meeting on Wednesday, will be keeping an eye on gross domestic product figures to be released this week.
The central bank injected more than 1.5 trillion dollars into the markets during the 2008-2009 financial crisis in an effort to support recovery.
Global stocks have been rallying in recent weeks on expectations of a stimulus plan, which has taken a heavy toll on the dollar.
However, the reports pushed the dollar up on Wednesday to end in New York at 81.75 yen. It eased to 81.63 yen in Tokyo morning trade but was well off the 15-year low of 80.41 reached earlier this week.
However, the greenback's gains have also been capped by Japanese exporters selling the unit as they try to cash in on its advances.
"The dollar was holding firm on short-covering" before the US Federal Reserve holds a policy meeting next week, said Daisuke Karakama, market economist at Mizuho Corporate Bank.
Market players "couldn't face the important event with huge short-positions on the dollar," he said, adding Japanese export companies' selling capped the dollar's rise.
Despite the weaker yen the Nikkei stock index slipped as traders sold off resources firms on the back of falling commodities prices.
However, dealers were waiting for the Bank of Japan's outlook for consumer prices and details of its asset-purchasing scheme later Thursday as the central bank holds a policy meeting.
The euro changed hands at 1.3779 dollars, compared with 1.3767 dollars in New York. The single currency was flat at 112.52 yen.
The Journal report was tempered as dealers kept an eye on the upcoming corporate earnings season, with hopes for a strong batch of figures.
Sydney was 0.82 per cent higher, boosted by a strong full-year earnings report from ANZ bank.
The Melbourne-based lender said annual net profits surged 53 per cent to 4.50 billion Australian dollars (4.37 billion US), adding to a rosy picture for the sector in prosperous Australia as bad debts ease.
The announcement came a day after rival NAB posted a 63 per cent net profit rise.