As the positive indications are coming from the Federal Reserve that it will taper asset purchases while promising to hold interest rates close to zero, Asian shares are up. However, shares in China and Hong Kong slid today. A better trading was made today Japanese and Australia indexes wherein Japan’s Topix index rose slightly and gained 1 percent.
Following the trend, the Nikkei 225 climbed 1.7 percent which is the highest since Dec. 12, 2007. Japanese stocks were up today as the yen touched the lowest intraday level since October 2008. Lower yen helps Japanese exports which to great extent determine the overall market trend. Yen traded at 104.01 per dollar as of 3:07 p.m. in Tokyo.
After setbacks in the last week, Australia’s S&P/ASX 200 Index also jumped a bit and gained 2.1 percent where the volume was 26 percent higher than the 30-day intraday average as equity index and single stock options contracts expired. The major gainer was Caltex which was able to maintain its growth and received a growth of 13 percent to A$19.12.
A similar pattern was followed by New Zealand’s NZX 50 Index which added 0.7 percent after economic growth accelerated to a great extent. The stock market of the country is up and the index gained the fastest in almost four years in the third quarter. Regional market was further boosted by South Korea’s Kospi index which added 0.1 percent.
The better trading was also seen in Taiwan’s Taiex index which added 0.7 percent. A similar pattern was seen in Singapore’s Straits Times Index which was little changed. However, China and Hong Kong indexes could not maintain the momentum. The Shanghai Composite Index retreated 0.6 percent as the country decided to liberalize interest rates.
Earlier in the U.S., market futures on the S&P 500 Index dropped 0.3 percent today; this happened as the equities gauge surged 1.7 percent to a record yesterday. The upward movement was kept by the Dow Jones Industrial Average soared 1.8 percent. The better growth in Dow Jones is an all-time high and a positive indication.
It is a mixed trading today in the Indian stock market as after gaining over 100 points, the S&P BSE Sensex pared early morning gains and slipped a little over 370 points. Indian stocks too are facing the challenge that the global economy is going to face once the Fed tapers stimulus.
To contact the reporter of this story: Jonathan Millet at email@example.com