Investing.com- Asian equities moved higher once again Wednesday despite news that North Korea launched a long-range rocket, a move that is in clear violation of sanctions by the West and others against the country. The South Korean Defense Ministry and the Japanese government confirmed the launch.
In Asian trading Wednesday, Japan’s Nikkei 225 jumped 0.71% despite some tepid economic news. In Japanese economic news, machinery orders rose 2.6% in October that missed economists’ estimates calling for an increase of 3%, but it was enough to stem two months of declines.
Despite news of the North Korean rocket launch, South Korea’s Kospi added 0.26%. Hong Kong’s Hang Seng rose 0.53%, but the Shanghai Composite slumped 0.13%.
Asian equities moved higher as traders bet the Federal Reserve will announce new bond-buying measures at the conclusion of its last monetary policy meeting of 2012 later today. With essentially no room to pare interest rates and the end of Operation Twist looming later this month, the Fed may be forced to appease the market by unveiling additional easing measures.
Some reports indicate traders believe the central bank will unveil another round of bond purchasing that equals $45 billion per month.
Then there is the matter of the fiscal cliff. News broke during Tuesday’s U.S. session that President Obama and House Speaker John Boehner had exchanged proposals to avert the dreaded fiscal cliff. That news sent U.S. equities soaring, but the gains were pared noticeably later in the session after Senate Majority Leader Harry Reid deemed solving the fiscal cliff "difficult."
In Australia, the benchmark S&P/ASX200 gained 0.4% to trade up to a new 2012 high. In New Zealand, the the NZSE 50 fell nearly 0.9% to join the Shanghai Composite as the regional laggard.
In Asian trading Wednesday, Japan’s Nikkei 225 jumped 0.71% despite some tepid economic news. In Japanese economic news, machinery orders rose 2.6% in October that missed economists’ estimates calling for an increase of 3%, but it was enough to stem two months of declines.
Despite news of the North Korean rocket launch, South Korea’s Kospi added 0.26%. Hong Kong’s Hang Seng rose 0.53%, but the Shanghai Composite slumped 0.13%.
Asian equities moved higher as traders bet the Federal Reserve will announce new bond-buying measures at the conclusion of its last monetary policy meeting of 2012 later today. With essentially no room to pare interest rates and the end of Operation Twist looming later this month, the Fed may be forced to appease the market by unveiling additional easing measures.
Some reports indicate traders believe the central bank will unveil another round of bond purchasing that equals $45 billion per month.
Then there is the matter of the fiscal cliff. News broke during Tuesday’s U.S. session that President Obama and House Speaker John Boehner had exchanged proposals to avert the dreaded fiscal cliff. That news sent U.S. equities soaring, but the gains were pared noticeably later in the session after Senate Majority Leader Harry Reid deemed solving the fiscal cliff "difficult."
In Australia, the benchmark S&P/ASX200 gained 0.4% to trade up to a new 2012 high. In New Zealand, the the NZSE 50 fell nearly 0.9% to join the Shanghai Composite as the regional laggard.