Investing.com - Asian stocks gained ground in Wednesday trade, with exporters getting a lift from a weaker yen and speculation that Japan’s central bank may follow the Swiss National Bank in an attempting to weaken its currency.
During early Asian trade, Hong Kong's Hang Seng Index added 0.48% to 19,710.50, Australia’s ASX/200 Index fell 1.6%, while Japan ’s Nikkei 225 Index climbed 1.5%.
Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange advanced 1.2% to 750.24
Earlier Tuesday, the Swiss franc plunged versus its major counterparts, including the euro, as the Swiss National Bank set a floor for EUR/CHF at 1.20 in an effort to lessen the negative effects a strong currency would have on exports.
“With immediate effect, the SNB will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities,” the SNB said in a statement.
The Swiss central bank’s decision spurred speculation that the Bank of Japan would follow Switzerland’s lead and intervene in exchange markets to weaken the yen against its counterparts.
The BOJ stepped in on August 4, as USD/JPY fell below 77.01. In early Asian trade USD/JPY was changing hands at 77.43.
Earlier Tuesday, the U.S. Institute of Supply Management reported its non-manufacturing purchasing manager’s index rose by 0.6 in August to 53.3 from 52.7 the previous month.
Economists had forecast the index to fall to 51.0 for the month.
An ISM manufacturing index above 50.0 indicates expansion in the non-manufacturing sector, while below 50.0 is a sign of general contraction.
Exporters led the way in Tokyo, with Toyota Motor Corp. up by 1.9%, Mazda Motor Corp. gained 3.4% and electronics manufacturer Sony Corp. higher by 2.9%.
South Korea’s Samsung Electronics Co. advanced 3%.
Resource and mining issues led gainers in Sydney, with BHP Billiton Ltd. rising 3.2%, Rio Tinto Ltd. climbing 20.5% and Fortescue Metals Group adding 2.9%.
The outlook for European stocks was optimistic. France’s CAC 40 futures was higher by 0.66% to 3,026.10, Britain’s FTSE 100 futures gained 0.45% to 5,234.90, while Germany’s DAX futures was up 0.45% to 5,297.10.