(MENAFN– ecpulse)
Asian stock markets closed mixed Wednesday as Japan slumped on back of a stronger yen amid renewed fears the Federal Reserve will soon start reducing its monetary stimulus.
Equities in Asia fluctuated tracking losses in Wall Street yesterday as traders continued to weigh when the Fed will start slicing the bulk of its %85 billion of monthly bond purchases in the wake of better-than-expected manufacturing data from the world’s largest economy before the release of the non-farm payrolls report on Friday.
- Japan`s Nikkei 225 fell 2.17% to 15,407.94, pulling back from the rise that took the benchmark to its highest level in nearly six months.
- Japan`s Topix headed for biggest drop in month
- Hong Kong’s Hang Seng ended 0.76% lower at 23,728.70.
- South Korea’s Kospi fell 1.12% to 1,986.80.
- Benchmarks in Singapore, Indonesia and the Philippines also slumped.
- China’s Shanghai Composite gained 1.31% settling at 2,251.76.
- Australia’s S&P/ASX 200 rose 0.34% to 5,273.75.
The outlook of the Fed’s stimulus program continued to support the greenback against its Japanese counterpart, while expectations of more easing in Japan dampened demand for the yen, even after we saw a halt in its depreciation earlier in the session.
USD/JPY rose 0.14% to 102.67 at 09:18 GMT, after hitting a session high of 102.84 in late Asian trade, compared with the previous close at 102.53.
While Japan’s Nikkei index closed at lowest level in two weeks, Chinese markets rallied on news of financial reforms in the Shanghai free trade zone (FTZ) will be implemented within three months.
Given the Fed’s focus on the labor and housing markets, November government employment data could be a strong cue whether the central bank chooses to start reducing its quantitative easing program sooner rather than later.
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