Asian Equities Rebounds Amid New Nominated Fed Chairman

By HY Markets Forex Blog

Asian equities were seen heading towards a rebound, while US President Barack Obama is expected to nominate Janet Yellen as the Federal Reserve chairman, when the current chairman Ben Bernanke stands down in January.

The Asian markets advanced after the Fed decided to maintain its $85 billion monthly stimulus program.

The Japanese benchmark Nikkei 225 index edged 0.25% lower to 13,859.84 points as of 1:31am GMT, while Tokyo’s broader Topix gauge dropped 0.1% to points as the same time.

Panasonic Corp announced that the company would stop production of plasma televisions; Panasonic traded 0.33% lower at the time of writing.

The US dollar left the Japanese yen declining after the Yellen news, giving major Japanese exporters slight gains. Mitsubishi Motors rose 0.8% higher, while Sharp dropped more than 2%.

In China, the markets saw losses as it opened, with Hong Kong’s Hang Seng dropping 0.57% to 23,046.00 points as of 1:55am GMT. While Tencent lost more than 2% and COSCO Pacific slid 2%.

Kunlun Energy dropped over 1% and China Shenhua Energy lost 0.9%.

The Chinese mainland Shanghai composite rose 0.02% higher at 2,198.64 points as of 1:55am GMT. The Australian benchmark S&P/ASX index edged 0.01% higher at 5,149.80 points as of 1:58am GMT.

Resolute Mining lost 4%, while Perseus Mining declined 3%. The largest gold mining company in Australia Newcrest Mining was trading 0.8% lower at the time of writing.

New Zealand’s benchmark NZX 50 index dropped 0.39% lower as of 1:37am GMT, at 4,720.30 points.

Asian Equities – Australia Consumer Confidence

Australia’s consumer sentiment saw a slight drop in October, according to a report released on Wednesday. The Westpac/Melbourne Institute Index of Consumer Sentiment declined 2.1% in October from the previous reading of 110.6 in September to 108.3.

“The modest fall in the Index is probably due to an expected retreat following the positive expectations around the election result,” Westpac’s chief economist Bill Evans commented.

“Other factors that might have weighed on the Index were the steady fall in the share market through the survey week (down 2%) and the steady rise in the Australian dollar (up from USD 0.93 cents to 0.94 cents) through the survey week.”Evan added.

 

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