- POSTED: 09 Oct 2013 16:49
This graph is an experimental feature that tracks number of views over time.
Asian stock markets were mostly higher Wednesday on news that President Barack Obama would nominate Janet Yellen to take over from Ben Bernanke as Federal Reserve chief, raising hopes the bank would stick to its easy money policy.
HONG KONG - Asian stock markets were mostly higher Wednesday as US debt woes were offset by President Barack Obama's offer of a short-term deal to end the crisis.
There was also broad support for stocks and the dollar on news that Obama would nominate Janet Yellen to take over from Ben Bernanke as Federal Reserve chief, raising hopes the bank would stick to its easy money policy.
Tokyo climbed 1.03 percent, or 143.23 points, to 14,037.84 and Sydney added 0.07 percent, or 3.6 points, to 5,153.0. Shanghai closed 0.62 percent higher, adding 13.57 points to 2,211.77.
However, Hong Kong closed down 0.63 percent or 144.88 points at 23,033.97.
Seoul was closed for a public holiday.
With the government shutdown moving into a ninth day, global investors are concerned Republicans and Democrats will not find a way round a budgetary impasse before an October 17 deadline to raise the borrowing limit.
Obama said Tuesday world leaders were nervous that Republicans would "blow up" the US economy if they did not abandon their demands for cuts to his healthcare law in return for passing a new budget and raising the borrowing limit.
Failure to raise the limit would mean the government could not pay its bills or service its debts, triggering a default that analysts have warned could send the world economy back into recession.
However, Obama did say he was willing to accept a short-term deal to raise the US$16.7 trillion debt ceiling and reopen the government -- effectively postponing the crisis for a number of weeks.
"If (the Republicans) can't do it for a long time, do it for the period of time in which these negotiations are taking place," he said.
Despite the president's comment, Wall Street fell. The Dow dropped 1.07 percent, the S&P 500 retreated 1.23 percent and the Nasdaq sank 2.00 percent.
But Desmond Chua, market analyst at CMC Markets in Singapore, said Asian dealers welcomed Obama's comments and the nomination of Yellen, considered a fiscal dove who will likely keep the bank's stimulus programme in place for as long as needed.
"There is some support in the market after these two pieces of news, but investors are still well aware that a resolution still depends on the House, which remains deadlocked," he told AFP.
Kelly Teoh, market strategist at IG Markets in Singapore, said: "(Yellen) is very much accepted by Asian investors because of her dovish stance on tapering and there is confidence that she will continue to keep interest rates low. Investors here see her as the closest to Bernanke."
In afternoon trade the dollar rose on the back of the Fed news, buying 97.42 yen compared with 96.86 yen in New York on Tuesday.
The euro fetched US$1.3551 against US$1.3572 in New York on Tuesday, and 132.04 yen against 131.47 yen.
On oil markets, New York's main contract, West Texas Intermediate for delivery in November was down three cents at US$103.46 in afternoon trade. Brent North Sea crude for November eased 11 cents to US$110.05.
Gold cost US$1,318.66 at 0640 GMT compared with US$1,320.86 on Tuesday.