Asian stocks rose after a volatile session on Friday as investors weighed unrest in Ukraine against Federal Reserve Chairwoman Janet Yellen expressing confidence in the strength of the U.S. economy.
The fear factor helped the yen rise against the dollar and euro on its traditional safe-haven appeal as tensions mounted in Ukraine.
Yellen’s testimony to a Senate committee helped the S&P 500 to close at a record high.
European shares were seen edging higher with sentiment bolstered by expectations that a further drop in euro zone inflation could prompt the European Central Bank to cut rates.
Financial spread betters predicted Britain’s FTSE 100 would open seven to 15 points higher, or as much as 0.2 per cent.
Germany’s DAX is to gain 9 to 17 points, or as much as 0.2 per cent.
France’s CAC 40 is to rise 9 to 13 points, or as much as 0.3 per cent.
Ukraine’s interior minister accused Russian forces on Friday of taking control of two airports in the Crimea region and condemned the action as an armed invasion and occupation.
Figures are likely to show euro zone inflation falling to 0.7 per cent in February from 0.8 per cent in the previous month, according to a media survey.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up slightly in late afternoon trading, on track for a modest weekly gain.
Tokyo’s Nikkei stock average skidded 0.6 per cent, down for both the week and the month, but ending well off its session lows.
The strength of the yen battered exporter shares and cancelled out any lift from data showing Japanese factory output rose in January at the fastest pace in more than two years.
Core inflation was near a five-year high.
Hong Kong shares fell on Friday afternoon with mainland markets also weaker as investors cut their exposure in cyclical outperformers ahead of a manufacturing survey.
A key China parliamentary meeting next week that will discuss how to implement reforms also affected investors.
“As usual, expectations are running high for some kind of supportive policy, this time for state-owned enterprise reform.
“But this is a game we have played before. Not much detail usually gets released,” said Jackson Wong, Tanrich Securities’ vice-president for equity sales.
China’s central bank stepped up its intervention to weaken the currency ahead of the key government meeting. (Reuters/NAN)
© anu for Royal Times of Nigeria Newspaper, 2014. |
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