Asian markets mixed before Bernanke speech
- From: AAP
- August 29, 2012
ASIAN markets were mixed on Wednesday, with attention turning to a speech by US Federal Reserve chief Ben Bernanke later in the week as dealers look for an indication of any stimulus by the central bank.
The euro eased against the yen and dollar after rising late Tuesday following successful bond auctions in Spain and Italy and on expectations that the European Central Bank (ECB) will restart a bond-buying program.
Tokyo gained 0.40 per cent, or 36.52 points, to end at 9069.81 and Seoul added 0.64 per cent, or 12.21 points, to 1928.54. Sydney closed flat, edging down 0.07 per cent, or 2.98 points, to 4356.4 points.
Hong Kong fell 0.12 per cent, or 23.29 points, to 19,788.51 and Shanghai eased 0.96 per cent, or 19.91 points, to 2053.24, its lowest since February 2009.
Bernanke is due to address central bankers at an annual meeting in Jackson Hole, Wyoming, on Friday, with investors hoping he will outline plans for further measures to boost the world's number one economy.
"Players remain in wait-and-see mode leading up to the Jackson Hole summit where more hints on information about the direction of monetary policy are expected," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities, according to Dow Jones Newswires.
Global markets enjoyed an impressive rally in August on hopes for fresh Fed stimulus and bond-buying by the ECB, while Chinese leaders are also expected to loosen monetary policy to kickstart the Asian giant.
On forex markets the euro bought $US1.2541 ($A1.21) and 98.52 yen in afternoon Asian trade, compared with $US1.2565 and 98.68 yen in New York late Tuesday.
The single currency was given some support by news that ECB head Mario Draghi would not attend Jackson Hole, which stoked speculation a new round of bond buying was near.
The US dollar was at 78.50 yen against 78.49 yen.
Wall Street provided an anaemic lead after mixed economic data.
The Conference Board reported its US consumer confidence index dropped to a nine-month low of 60.6 for August, down from 65.9 in July.
The report showed lower confidence over business and job prospects.
Before the opening bell, the S&P Case-Shiller Home Price Index of 20 cities showed prices rose for the fifth straight month in June, by 1.0 per cent.
The Dow fell 0.17 per cent and the S&P 500 slipped 0.08 per cent while the tech-rich Nasdaq rose 0.13 per cent.
On Tokyo's Nikkei index shares in troubled microchip maker Renesas closed up 35.08 per cent at 308 yen after media reports that a US investment fund plans to spend $1.3 billion to take control of it.
Kohlberg Kravis Roberts & Co (KKR) reportedly hopes to reach a formal agreement with the firm's top three Japanese stakeholders - NEC, Hitachi and Mitsubishi Electric - as early as September.
The investment of 100 billion yen would dwarf Renesas's market capitalisation of about 95 billion yen as of Tuesday.
Oil eased, with New York's main contract, light sweet crude for October delivery, shedding 83 cents to $US95.50 a barrel and Brent North Sea crude for delivery in the same month slipping 66 cents to $US111.92.
Gold was at $US1665.05 at 2050 AEST compared to $US1661.90 on Tuesday.
In other markets:
- Taipei rose 0.40 per cent, or 29.21 points, to 7391.15.
Taiwan Semiconductor Manufacturing Co was 0.36 per cent higher at Tw$82.7 while leading smartphone maker HTC gained 2.01 per cent at Tw$253.5.
- Manila closed 0.39 per cent higher, adding 20.10 points to 5195.72.
Metropolitan Bank and Trust rose 1.39 per cent to 94.85 pesos and SM Prime Holdings added 0.29 per cent to 13.80 pesos.
- Wellington closed flat, edging down 0.66 points to 3628.39.
Telecom was down 0.2 per cent at NZ$2.43 and Air New Zealand was flat at NZ$0.90.
- Bangkok fell 1.05 per cent, or 13.00 points, to 1220.16.
Energy firm Banpu gained 0.45 per cent to 446.00 baht, while energy giant PTT lost 0.30 per cent to 333.00 baht.
- Kuala Lumpur stocks were flat, losing 0.09 per cent, or 1.53 points, to close at 1645.58.
Kuala Lumpur Kepong Bhd fell 1.4 per cent to 23.24 ringgit while PPB Group Bhd was down 0.7 per cent to 13.98 ringgit.
- Singapore was flat, closing up 0.05 per cent, or 1.50 points, at 3041.57.
Olam International fell 2.01 per cent to Sg$1.95 while DBS Group added 0.83 per cent to Sg$14.62.
- Jakarta closed 1.20 per cent, or 49.68 points, lower at 4093.17.
Mining company Aneka Tambang fell 1.57 per cent to 1250 rupiah, Astra International fell 2.10 per cent to 7,000 rupiah, while Indocement slid 3.12 per cent to 20,200 rupiah.
- Mumbai fell 0.80 per cent, or 140.90 points, to 17,490.81.
Sterlite Industries, the local arm of global resources group Vedanta, fell 4.69 per cent to 99.6 rupees while leading motorcycle maker Bajaj Auto slid 3.96 per cent to 1627.25 rupees.