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Asia stocks mixed as market digests ECB policy; Nikkei up 0.07%

Published 08/20/2012, 11:10 PM
Updated 08/20/2012, 11:12 PM
Investing.com - Asian stocks were mixed to higher on Tuesday as investors digested comments out of the  European Central Bank that media reports suggesting the monetary authority was planning to buy government debt to lower borrowing costs were misleading.

During Asian trading on Tuesday, Hong Kong's Hang Seng Index was down 0.12%, Australia's S&P/ASX200 was up 0.58%, while Japan’s Nikkei 225 Index was up 0.07%.

The German publication Der Spiegel reported over the weekend that the European Central Bank may decide to cap yields in eurozone sovereign debt markets at its September policy meeting.

The European Central Bank would carry out such a policy via buying sovereign bonds in the open market, though bank officials later rejected the news report, describing it as misleading.

European Central Bank officials have said they would consider intervening in bond markets but only if governments meet certain fiscal reforms.

Meanwhile, the Bundesbank, the German central bank, said it remains critical of having the ECB purchase sovereign bonds.

The news sent investors looking elsewhere for guidance, with many largely on the sidelines ahead of Wednesday's release of the minutes from the Federal Reserve’s August policy meeting.

A string of solid economic indicators in the U.S. has lowered expectations for the U.S. central bank to roll out a new round of stimulus measures, which would send stocks rising though language to forgo intervention would suggest more pronounced recovery, which would also send to stocks up.

Most opted to wait and see what language arrives with the release of the minutes.

Consumer sentiment figures have surprised on the upside as have retail sales numbers, industrial production figures and other indicators.

Meanwhile in Europe, Luxembourg Prime Minister Jean-Claude Juncker is due to visit Athens later this week and markets were optimistic European policymakers will adjust austerity requirements attached to bailout payments.

Greece has requested a two-year extension to make fiscal adjustments.

In Hong Kong, top decliners included China Resources, down 2.30%, HKEx, down 1.96%, and Bank of East Asia, down 1.42%.

In Australia, top gainers included Monadelphous Group, up 7.05%, Energy World Corporation, up 4.95%, and TPG Telecom, up 3.83%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.22%, while Germany's DAX 30 futures pointed to a gain of 0.09%. Meanwhile in the U.K., FTSE 100 futures indicated a gain of 0.08%.

Dow Jones Industrial Average futures were up 0.09% while the S&P 500 futures were up 0.06%.

Investors will remain focused on Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting while the National Association of Realtors releases existing home sales.








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