Asia stocks hit multi-month highs; Nikkei ends up 0.6%

Investing.com - Asian stock markets were broadly higher on Wednesday, as investors looked ahead to the conclusion of the Federal Reserve’s policy-setting meeting later in the trading day.

In addition, market players continued to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.

During late Asian trade, Hong Kong's Hang Seng Index rose 0.7%, Australia’s ASX/200 Index settled 0.2% higher, while Japan’s Nikkei 225 Index ended up 0.6%.

Investors focused on the outcome of the Federal Reserve’s policy meeting later Wednesday, amid expectations the central bank will continue to pursue a policy of monetary easing in order to support the U.S. economic recovery.

Many analysts expect the Fed to announce monthly bond purchases of USD45 billion. This will be on top of its September announcement of USD40 billion in mortgage-backed securities.

Meanwhile, investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the three weeks left before the deadline.

In Tokyo, the Nikkei climbed to the highest level since April 2, as exporters advanced on the back of a weakening yen.

The Nikkei has rallied nearly 10% in the past four weeks, with exporters amongst the most notable gainers, as ongoing weakness in the yen boosted the outlook for export earnings.

The yen has been weighed by speculation the country’s main opposition leader, Liberal Democratic Party chief Shinzo Abe will win the upcoming general election on December 16. Abe said recently that the Bank of Japan should employ unlimited monetary easing until inflation reaches 2%.
 
Consumer electronics makers Sony and Canon rallied 3% and 2.6% respectively, while automakers Honda and Toyota gained 1.3% and 0.85%.

Meanwhile, shares in Hong Kong rose to a 16-month high, with financials and property developers the most notable gainers.

China Construction Bank saw shares add 1.3%, Bank of China climbed 1.8%, while China’s largest lender Industrial and Commercial Bank of China advanced 1.5%.

Elsewhere, in Australia, the benchmark ASX/200 Index climbed to a 17-month high, as raw material producers rose on the back of higher commodity prices.

Global miners BHP Billiton and Rio Tinto tacked on 1% and 0.7% respectively y, while iron ore producer Fortescue Metals Group jumped 1.65%.

Looking ahead, European stock market futures were mostly steady. The EURO STOXX 50 futures pointed to a gain of 0.1% at the open, France’s CAC 40 futures were flat, London’s FTSE 100 futures was little changed, while Germany's DAX futures pointed to a flat open.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Later in the day, the euro zone was to release official data on industrial production.