On Wednesday, the stock markets in Asia opened with a mixed trend. Many shares in the continent looked bleak as taut liquidity circumstances in China continued to linger over the mind of the investors even though Central Bank tried to assure people of positive movements in the coming months.
Hang Seng Index of Hong Kong posted a hike of 1.3% during late Asian trading session, bouncing back from the nine month low reached earlier this week. The rise came after the People’s Bank of China indicated on Tuesday that it would make efforts to drive the interest rates to a “reasonable range.” The bank also maintained that the risk factors are still under control to a large extent considering that interbank liquidity is bountiful if taken as a whole.
The statement of central bank regarding keeping a vigilant eye on the liquidity alterations so that it can take necessary measures to balance the market expectations also inculcated some hope among otherwise anxious traders.
Coming to the shares on the Hong Kong list, China Minsheng Bank’s stocks went up by 6%, followed by China Merchants Bank and Industrial & Commercial Bank of China that showed a rally of 4.5% and 4.6%, in that particular order.
The benchmark ASX/200 Index in Australia also followed suit and climbed by 1.6%, recoiling from six month low hit during the earlier trading session. The reason behind this pull through is considered to be the bounce back of global miners following buoyant U.S. data revealed on Tuesday that strengthened the hope of seeing quick economic recovery. Talking about stocks in Australia, share of Rio Tinto rose by 3.3% and those of BHP Billiton and Fortescue Metals moved up by 2.6% and 2.4% apiece.
As far as the banks are concerned, major banks including National Australia Bank, ANZ Banking Group, Commonwealth Banking Group, and Westpac Banking Group climbed up by 1.9%, 1.7%, 1.8%, and 2% respectively.
On the other hand, Japan’s Nikkei 225 Index witnessed a drop of 1% following concerns over movements in the yen and news from the Japanese government bond market. Shares of exporters like Mazda and Sharp plummeted by 1.1% and 3.5%, respectively.