Asian markets have taken their cues from gains seen in Wall Street where the S&P 500 finished up 0.43% on the back of stronger-than-expected Pending Home Sales and broadly in-line Unemployment Data. However, we did hear during US hours that US House speaker Boehner said Obama’s actions have not matched statements and no substantive progress has been made in talks. After the US close, Boehner did comment in an email statement, saying that he criticized the senate democratic rule change proposal and the house won’t consider bills passed under the new rule. This statement caused US stock futures to move lower and these comments could gain more traction at the European open. Continued back and forth between US politicians indicates the US fiscal cliff issue is still in the process of muddling through.
Nikkei 225 recovered its earlier losses to trade in solid positive territory as the sentiment in the local market has been strongly lifted after the Japanese cabinet approved a second round of fiscal stimulus, this time to the tune of JPY 880bln. Meanwhile, JPY is weakening across the board with EUR/JPY moving through the 107.00 level.
Elsewhere, the ASX 200 has trended higher as participants continue to price in the increased likelihood of a rate cut at the RBA’s decision next week, which has also translated in its local currency, with AUD/USD trading lower on the day.
Looking forward, we have Indian Q3 GDP Y/Y, which is scheduled to be released at 0530GMT/ 2330CST.
As of 0250GMT:
ASX200 (+0.72%), Nikkei 225 (+0.88%), Shanghai Comp. (+0.79%), Hang Seng (+0.71%), KOSPI (+0.30%)
Print 03:01, 30 Nov 2012 - Asian News - Source: Newswires
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