Investing.com - Asian stocks were mixed on Thursday after the Federal Reserve said earlier it stands ready to stimulate the economy though on an as-needed basis.
During Asian trading on Thursday, Hong Kong's Hang Seng Index was down 0.37%, Australia's S&P/ASX200 was up 0.16%, while Japan’s Nikkei 225 Index was up 0.35%.
The U.S. Federal Reserve wrapped up a two-day monetary policy meeting earlier and made no changes to interest rates or policy in general, reiterating earlier stances that it will stimulate the economy if recovery further deteriorates.
Meanwhile, the U.S. economy continues to grow though its pace of recovery appears to be moderating.
The Fed said it left its benchmark interest rate, the fed funds target, unchanged at 0.25% and added that economic conditions meriting loose policies will likely stick around through the end of 2014.
However, the U.S. central bank said it would stay on the sidelines with no plans — for now — to stimulate the economy via tools such as quantitative easing, which are bond purchases from banks that flood the economy with liquidity, weakening the dollar in the process to spur recovery in a way that boosts stock prices.
"The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," the Fed added.
Stimulus measures tend to weaken the dollar and send stocks around the globe rising, though stocks held some ground on expectations that the Fed could announce plans to intervene in the economy at its next meeting in September.
Stocks also saw other reasons to rise.
Surprisingly strong data on U.S. private sector employment cheered investors otherwise disappointed at Federal Reserve reticence to intervene in the U.S. economy.
U.S. payroll processor ADP reported earlier that the private-sector increased headcount by a seasonally adjusted 163,000 in July, beating expectations for an increase of 120,000.
June’s figure was revised down to 172,000, slightly lower that the initial estimate of 176,000.
The ADP figure serves as a weather vane for the official unemployment rate, which will publish on Friday.
Manufacturing data out of the U.S. disappointed, however.
The Institute for Supply Management’s manufacturing purchasing managers index hit 49.8 in July, up slightly from a three-year low of 49.7 reached in June though below market forecasts for a reading of 50.2.
In Hong Kong, top decliners included PetroChina Co., down 2.13%, Wharf Holdings, down 1.58%, and China Resources, down 0.77%.
In Australia, top gainers included Intrepid Mines, up 20.69% on news that a project will go ahead in Indonesia, Coalspur Mines, up 7.52%, and Bluescope Steel, up 5.88%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.37%, while Germany's DAX 30 futures signaled a gain of 0.30%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.09%.
Dow Jones Industrial Average futures were up 0.25% while the S&P 500 futures were up 0.25%.
Equities investors will focus on the European Central Bank later Thursday, which will announce
its decision on interest rates and monetary policy.
Also on Thursday, U.S. is to release government data on initial jobless claims and factory orders, a leading indicator of production.
During Asian trading on Thursday, Hong Kong's Hang Seng Index was down 0.37%, Australia's S&P/ASX200 was up 0.16%, while Japan’s Nikkei 225 Index was up 0.35%.
The U.S. Federal Reserve wrapped up a two-day monetary policy meeting earlier and made no changes to interest rates or policy in general, reiterating earlier stances that it will stimulate the economy if recovery further deteriorates.
Meanwhile, the U.S. economy continues to grow though its pace of recovery appears to be moderating.
The Fed said it left its benchmark interest rate, the fed funds target, unchanged at 0.25% and added that economic conditions meriting loose policies will likely stick around through the end of 2014.
However, the U.S. central bank said it would stay on the sidelines with no plans — for now — to stimulate the economy via tools such as quantitative easing, which are bond purchases from banks that flood the economy with liquidity, weakening the dollar in the process to spur recovery in a way that boosts stock prices.
"The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," the Fed added.
Stimulus measures tend to weaken the dollar and send stocks around the globe rising, though stocks held some ground on expectations that the Fed could announce plans to intervene in the economy at its next meeting in September.
Stocks also saw other reasons to rise.
Surprisingly strong data on U.S. private sector employment cheered investors otherwise disappointed at Federal Reserve reticence to intervene in the U.S. economy.
U.S. payroll processor ADP reported earlier that the private-sector increased headcount by a seasonally adjusted 163,000 in July, beating expectations for an increase of 120,000.
June’s figure was revised down to 172,000, slightly lower that the initial estimate of 176,000.
The ADP figure serves as a weather vane for the official unemployment rate, which will publish on Friday.
Manufacturing data out of the U.S. disappointed, however.
The Institute for Supply Management’s manufacturing purchasing managers index hit 49.8 in July, up slightly from a three-year low of 49.7 reached in June though below market forecasts for a reading of 50.2.
In Hong Kong, top decliners included PetroChina Co., down 2.13%, Wharf Holdings, down 1.58%, and China Resources, down 0.77%.
In Australia, top gainers included Intrepid Mines, up 20.69% on news that a project will go ahead in Indonesia, Coalspur Mines, up 7.52%, and Bluescope Steel, up 5.88%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.37%, while Germany's DAX 30 futures signaled a gain of 0.30%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.09%.
Dow Jones Industrial Average futures were up 0.25% while the S&P 500 futures were up 0.25%.
Equities investors will focus on the European Central Bank later Thursday, which will announce
its decision on interest rates and monetary policy.
Also on Thursday, U.S. is to release government data on initial jobless claims and factory orders, a leading indicator of production.