Hong Kong led Asia lower on Wednesday as the U.S. government shutdown continued to drag on international markets. That negative sentiment outweighed any boost from news U.S. President Barack Obama will nominate Janet Yellen as Federal Reserve chairman.
The Nikkei 225 index in Japan regained 41.29 points, or 0.3% to 13,894.61
Hong Kong’s Hang Seng Index hiked 204.90 points, or 0.9%, to 23,178.65
In Hong Kong, financial stocks were mostly lower, with China Construction Bank Corp. down 0.7% and HSBC Holdings PLC off 0.5%. In other action, shares of Geely Automobile Holdings Ltd. slumped 3.4% as a unit of Goldman Sachs reportedly plans to sell its entire stake in the vehicle maker.
Seen as a monetary policy dove, Yellen is considered more likely to maintain the Fed’s current stance which may provide relief for Southeast Asian markets under pressure recently from fears the Fed could change course.
The Japanese currency weakened to 97.17 yen per U.S. dollar compared with ¥96.87 late on Tuesday in New York.
Mizuho Financial Group lost 1.9% in Tokyo after its chief executive said Mizuho Bank’s former head had received reports about loans to figures connected to organized crime — contradicting earlier remarks by bank officials who said management hadn’t been informed.
Also in Japan, Honda Motor Co. rose 0.5%, outperforming the broader market, after its new car sales in China for September more than doubled on year — recovering from a fall caused by a territorial dispute between Japan and China.
The next major economic point for Asia will be Chinese data with trade and inflation numbers over the weekend and early next week. Markets will be looking for more signs of economic recovery.
In other markets;
Markets in Korea had the day off
Shanghai’s CSI 300 gained 11.77 points, or 0.5%, to 2,453.58
Taiwan’s Taiex index sifted off 30.92 points, or 0.4%, to 8,344.73
The Singapore Straits Times Index advanced 8.34 points, or 0.4%, to 3,154.84
In New Zealand, the Exchange 50 Gross Index subtracted 28.05 points, or 0.6%, to 4,710.63
In Australia, the S&P/ASX 200 inched higher 3.54 points, or 0.1%, to 5,152.99
