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Asia stocks mixed after Fed decision; Nikkei ends down 0.2%

Published 07/31/2014, 02:54 AM
Updated 07/31/2014, 02:54 AM
Asia stocks end mixed after Fed decision

Asia stocks end mixed after Fed decision

Investing.com - Asian stock markets were mixed on Thursday, following the Federal Reserve’s decision to taper its monthly bond-buying program by $10 billion for the sixth consecutive meeting.

During late Asian trade, Hong Kong's Hang Seng rose 0.1%, China’s Shanghai Composite tacked on 0.27%, Australia’s S&P/ASX 200 closed 0.18% higher, while Japan’s Nikkei 225 ended down 0.16%.

Asia was given a negative lead from the U.S., where the Dow ended lower as data showing stronger than expected second quarter economic growth was offset by weaker earnings and the Fed’s decision to keep trimming asset purchases.

The central bank tapered its monthly bond-buying program by another $10 billion, staying on pace to end the purchase program in October, and gave an upbeat assessment of the economy at the end of its two-day meeting on Wednesday.

Before that, a Commerce Department report showed the U.S. economy grew at a 4% annualized rate in the second quarter, after contracting by 2.1% in the first quarter.

Investors now turned their attention to Friday’s U.S. jobs report for July, which was expected to indicate that the recovery in the labor market is continuing.

In Tokyo, the Nikkei turned lower after hitting a fresh six-month high earlier in the day, as traders continued to monitor movements in the currency market.

The yen strengthened to 102.71 against the dollar, after falling to a four-month low of 103.07 in the previous session.

Elsewhere, in Australia, the ASX/200 Index rose to new six-year highs for the third straight session as gains in the financial sector boosted the benchmark index.

Meanwhile, shares in mainland China and Hong Kong edged higher in choppy trade, with the Hang Seng trading at a seven-year peak.

Gains were limited after the International Monetary Fund warned that China should set a lower growth target.

Looking ahead, European stock market futures pointed to a higher open. The DJ Euro Stoxx 50 pointed to a gain of 0.2%, France’s CAC 40 rose 0.4%, London’s FTSE 100 indicated a gain of 0.25%, while Germany's DAX added 0.1%.

Across the Atlantic, U.S. equity markets pointed to a weak open. The Dow pointed to a loss of 0.1%, the S&P 500 inched down 0.15%, while the Nasdaq 100 indicated a decline of 0.15%.

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