Stocks rallied across Asia on Wednesday, tracking gains in U.S. shares after consumer confidence in the world’s largest economy rose to an over six-year high. However, traders say the gains could be fleeting as the focus turns to local factors.
Japan’s Nikkei 225 regained 53.97 points, or 0.4%, to 14,477.16, after the release of the Conference Board’s consumer confidence index for March. The reading of 82.3 was the highest since January 2008.
The U.S. dollar bought ¥102.33. Traders say sentiment is fragile ahead of the end of the quarter and a hike in consumption tax due next week.
The Hang Seng Index in Hong Kong recovered 155.43 points, or 0.7%, to 21,887.75, after a selloff yesterday on fears of mounting problems in corporate credit markets.
South Korea’s Kospi increased 0.8% to 1,957.89 as expectations rise of measures to accelerate growth, while investors are untroubled by reports that North Korea fired two midrange ballistic missiles into the sea early on Wednesday morning.
A recent downward revision of Korea’s growth forecast has prompted expectations of policy easing
CHINA
Chinese banks led stocks higher after Agricultural Bank of China posted earnings in line with estimates, reassuring investors about levels of bad debts in the financial system. Bank of China also reports earnings today.
The Shanghai Shenzhen CSI 300 slipped 3.39 points, or 0.1%, to 2,171.05
U.S.-listed Chinese firms rose overnight on hopes the Chinese government will take measures to counteract deteriorating economic data.
However, the People’s Bank of China is unlikely to shift to a dovish policy stance, but rather a "less hawkish" one, according to one expert.
In other markets;
In Taiwan, the Taiex added 47.97 points, or 0.6%, to 8,737.27
Singapore’s Straits Times Index regained 39.15 points, or 1.3%, to 3,143.32
Korea’s Kospi Index increased 23.06 points, or 1.2%, to 1,964.31
The New Zealand Exchange 50 index slid 5.81 points, or 0.1%, to 5,124.89
In Australia, the S&P/ASX 200 moved back up again 40.13 points, or 0.8%, to 5,376.75
