Investing.com - Asian stocks traded higher on Wednesday as investors grew confident the U.S. Federal Reserve will announce plans to stimulate the economy later this week.
A German court mulling the constitutionality of participating in eurozone bailout operations may announce a ruling later Wednesday, and investors grew increasingly confident the court will rule in favor of intervention in rescue programs.
During Asian trading on Wednesday, Hong Kong's Hang Seng Index was up 1.10%, Australia's S&P/ASX200 was up 0.78%, while Japan’s Nikkei 225 Index was up 1.47%.
The U.S. government reported last week the economy created a net 96,000 nonfarm payroll jobs in August, well below market calls for 125,000 jobs and a figure that many investors saw as a tipping point that will nudge the Federal Reserve to roll out a third round of quantitative easing.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring.
Such accommodative policies tend to weaken the dollar by design and send stocks rising worldwide.
The Fed opens its two-day monetary policy meeting later today, and more and more investors grew convinced the U.S. central bank will act, with an announcement coming on Thursday.
On top of hopes that Germany will participate in bailout programs, stocks in Asia also rose on hopes China will take steps to stimulate its economy either by cutting interest rates, lowering bank reserve requirements or other measures.
The U.S. trade deficit, meawhile, widened to a seasonally adjusted USD42.0 billion from a downwardly revised deficit of USD41.9 billion in June.
Analysts had expected the U.S. trade deficit to widen to USD44.0 billion.
Meanwhile in Japan, the country's tertiary industry activity index fell more than expected in July, according to official data.
The Japanese tertiary industry activity index fell to a seasonally adjusted -0.8%, from 0.2% in the preceding month whose figure was revised up from 0.1%.
Analysts had expected Japanese tertiary industry activity index to fall -0.4% last month.
Also in Japan, the country's corporate goods price index fell less than expected in August.
The Bank of Japan reported that the country's Corporate Goods Price Index fell to a seasonally adjusted annual rate of -1.8%, from -2.1% in the preceding month.
Analysts had expected Japan’s Corporate Goods Price Index to fall -1.9% last month.
In Hong Kong, top gainers included CITIC Pacific, up 3.09%, Henderson Land, up 2.42%, and New World Development, up 2.30%.
In Australia, top gainers included Ramelius Resources, up 16.05%, Discovery Metals, up 5.61%, and Aquarius Platinum, up 4.35%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.40%, while Germany's DAX 30 futures pointed to a gain of 0.56%. Meanwhile in the U.K., FTSE 100 futures indicated a gain of 0.14%.
Dow Jones Industrial Average futures were up 0.25% while the S&P 500 futures were up 0.19%.
Markets will stay focused on Germany, eager to hear from the court's ruling on the constitutionality of participating in bailout activities.
A German court mulling the constitutionality of participating in eurozone bailout operations may announce a ruling later Wednesday, and investors grew increasingly confident the court will rule in favor of intervention in rescue programs.
During Asian trading on Wednesday, Hong Kong's Hang Seng Index was up 1.10%, Australia's S&P/ASX200 was up 0.78%, while Japan’s Nikkei 225 Index was up 1.47%.
The U.S. government reported last week the economy created a net 96,000 nonfarm payroll jobs in August, well below market calls for 125,000 jobs and a figure that many investors saw as a tipping point that will nudge the Federal Reserve to roll out a third round of quantitative easing.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring.
Such accommodative policies tend to weaken the dollar by design and send stocks rising worldwide.
The Fed opens its two-day monetary policy meeting later today, and more and more investors grew convinced the U.S. central bank will act, with an announcement coming on Thursday.
On top of hopes that Germany will participate in bailout programs, stocks in Asia also rose on hopes China will take steps to stimulate its economy either by cutting interest rates, lowering bank reserve requirements or other measures.
The U.S. trade deficit, meawhile, widened to a seasonally adjusted USD42.0 billion from a downwardly revised deficit of USD41.9 billion in June.
Analysts had expected the U.S. trade deficit to widen to USD44.0 billion.
Meanwhile in Japan, the country's tertiary industry activity index fell more than expected in July, according to official data.
The Japanese tertiary industry activity index fell to a seasonally adjusted -0.8%, from 0.2% in the preceding month whose figure was revised up from 0.1%.
Analysts had expected Japanese tertiary industry activity index to fall -0.4% last month.
Also in Japan, the country's corporate goods price index fell less than expected in August.
The Bank of Japan reported that the country's Corporate Goods Price Index fell to a seasonally adjusted annual rate of -1.8%, from -2.1% in the preceding month.
Analysts had expected Japan’s Corporate Goods Price Index to fall -1.9% last month.
In Hong Kong, top gainers included CITIC Pacific, up 3.09%, Henderson Land, up 2.42%, and New World Development, up 2.30%.
In Australia, top gainers included Ramelius Resources, up 16.05%, Discovery Metals, up 5.61%, and Aquarius Platinum, up 4.35%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.40%, while Germany's DAX 30 futures pointed to a gain of 0.56%. Meanwhile in the U.K., FTSE 100 futures indicated a gain of 0.14%.
Dow Jones Industrial Average futures were up 0.25% while the S&P 500 futures were up 0.19%.
Markets will stay focused on Germany, eager to hear from the court's ruling on the constitutionality of participating in bailout activities.