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Asia stocks mixed after Fed pledge; Nikkei sheds 0.4%

Published 01/26/2012, 02:50 AM
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Investing.com - Asian stock markets were mixed on Thursday, after the Federal Reserve pledged on Wednesday to keep rates at historically low levels until at least late 2014, a year longer than it had previously stated.

During late Asian trade, Hong Kong's Hang Seng Index rallied 1.5% Japan’s Nikkei 225 Index shed 0.4%, while Australia’s S&P/ASX200 Index remained closed.

Trading in the region was subdued. Markets in Taiwan and mainland Chinese remained closed for the Chinese Lunar New Year, while markets in India and Australia were closed for public holidays.

The Fed’s Open Market Committee said in a statement that economic conditions “are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

The new commitment replaces the statement that economic conditions were likely to stay at the historic low range of 0% to 0.25% until at least mid-2013.

Shares in Hong Kong rallied as investors returned from a long Lunar New Year-holiday, led higher by financials and commodity-linked shares.   

The nation’s largest lender Industrial and Commercial Bank of China saw shares jump 3.2%, China Construction Bank rose 2.1%, while insurers Ping An and China Life surged 3.95% and 4.3% respectively.

Raw material producers contributed to gains, tracking oil and metal prices higher. Zijin Mining saw shares rally 5.3%, Jiangxi Copper Company gained 4.3%, while oil producers CNOOC and Sinopec added 2.1% and 1.5%.

Elsewhere, concerns over disappointing earnings and a stronger yen saw Japanese exporters knock the Nikkei off a three-month high. Consumer electronics giant Sony slipped 1.4%, while automakers Honda and Nissan fell 1% and 1.15% respectively.    

Glassmakers performed poorly after U.S. counterpart Corning posted disappointing fourth quarter earnings results. Nippon Electric Glass tumbled 6.75% and Asahi Glass Company dropped 3.6%.

On the upside, Tokyo Electric Power Company saw shares rise 5.45% on a report the utility plans to take public funds to avoid bankruptcy.

Looking ahead, the outlook for European stock markets was upbeat talks on a debt swap deal between Greece and its creditors were to resume in Athens later in the day.

The EURO STOXX 50 futures pointed to a gain of 0.7%, France’s CAC 40 futures rose 0.6%, London’s FTSE 100 futures added 0.35%, while Germany's DAX futures pointed to an increase of 0.5%.

Later in the day, the U.S. was to release official data on initial jobless claims as well as a report on durable goods orders.

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