The week began with a bright prospect after the gloomy trading last week, as Asian stock markets were mostly higher today. The reason behind the upward movement of several regional stock markets and indexes was that investors looked ahead to Janet Yellen’s first comments before Congress as the new Federal Reserve chairwoman.
The boost in regional Asian stock markets was seen due to a jump in mainland Chinese shares wherein the regional index headed for its longest streak of daily gains since December. The MSCI Asia Pacific Index increased 0.5 percent. A major reason behind the boost is that speculation that the Lunar New Year sales were strong.
Additionally, Chinese equity indexes were up today which according to investors is a positive signal. There were not better prospects for Hong Kong wherein losses by bank and casino shares restrained gains in the country.
China’s Shanghai Composite Index saw a healthy increase when it gained 1.4 percent to 2,072.26. A similar trend was seen in Tokyo’s Nikkei 225 which went up by 1.1 percent to 14,620.38. Whereas Taiwan’s Taiex shed 0.6 percent to 8,433.33, Seoul’s Kospi rose 0.1 percent to 1,924.29.
Australian stock market was up today wherein Sydney’s S&P/ASX 200 gained 0.6 percent to 5,197.20. Other regional stock markets of Singapore, Manila and Jakarta also gained. Some top performer or the stocks to buy today include shares from Canadian Solar Inc, Arrowhead Research, Gw Pharmaceuticals, Adept Technology, and China Mobile Games.
China Releases Its Fourth-Quarter Monetary Policy Report
In its fourth-quarter monetary policy report the People’s Bank of China said that when the valve of liquidity starts to tame and curb excessive credit expansion, money-market rates, or the cost of liquidity, will reflect that. The central bank of China also admitted that volatility in money-market interest rates will persist and borrowing costs will rise.
Earlier it said that as the borrowing costs will rise underscoring the risk of defaults that could weigh on confidence and drag down growth. The problem is coupled with the low employment turnout in the U.S. wherein it added merely 113,000 jobs in January, far below the 170,000 analysts had been expecting.
Nonetheless, though unemployment dipped to 6.6 percent, the lowest rate since the global financial crisis hit in late 2008, it is not enough to send positive signals to investors. Now, the only way out for investors is anything that can bring something positive is Yellen’s policy decision on the budget stimulus.
To contact the reporter of this story: Jonathan Millet at email@example.com