Asia close: Nikkei at 4 week high ahead of China data
Posted on:
09
Aug
2012
by Polly York
Nikkei: 0.88%
Hong Kong: -0.04%
Shanghai: 0.16%
Taiwan: 0.33%
Australia: 0.49%
Thailand: 0.78%
The region´s main benchmarks finished mostly higher on Wednesday. That ahead of important economic data expected out tomorrow in China but following comments from the President of the Federal Reserve Bank of Boston in favour of further quantitative easing. The news-flow out of the Eurozone was similarly encouraging.
The Nikkei closed at a four week high, with chip companies wanted after Goldman Sachs raised its US semiconductor view to attractive from neutral. Some analysts, however, still prefer to call attention to the recent appreciation in the Yen and weak economic growth regionally.
Precisely in that regard Nikon, the Japanese maker of cameras and chipmaking equipment, lowered its annual forecasts for profits, as global economic growth may slow, and yet its stock rose.
Japan´s current account surplus increased to 433bn Yen in June ($5.5bn) from 215bn Yen in May (Consensus: 415bn Yen).
The Yen however weakened, possibly on news of renewed political infighting and a possible demand from LDP politicians for early elections in exchange for their support in pusshing through an increase in sales taxes.
AB
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