Asia Indexes Advanced, Kuroda Comments Eased Yen

Arjun Pandit
26 Dec, 2022
New York City

In subdued trading, the Nikkei index advanced 0.7% to 26,405.87 following the easing of inflation in the U.S. 

The yen also edged lower from the four-month high after comments from the Bank of Japan Governor Haruhiko Kuroda.

The widening of the yield range for the Japanese government bonds was "absolutely not a first step" in exiting from the ultra-low rate policy, Governor Haruhiko Kuroda said at a gathering today. 

He added the move was designed to continue the implementation of a sustainable monetary easing."

In Shanghai stocks advanced despite the lingering Covid woes and rapidly rising infection rates. 

In addition, health regulators said they will stop releasing daily Covid cases amid rising infection rates. 

The Shanghai Composite index increased 0.7% to 3,065.56 but the Hang Seng Index declined 0.4% to 19,593.06. 

 

Sensex In India Jumps 1.2% 

Stocks in Mumbai advanced following a rise in Asian markets and optimism on Wall Street. 

Benchmark indexes opened higher after the preferred inflation measure by the U.S. Federal Reserve cooled in November. 

The Price Consumption Expenditure index, an alternative measure of inflation which understates the headline inflation but provides broader understanding of the consumer, rose at the slowest pace of 0.1% in November from October. 

On an annual basis, the PCE index rose 5.5% in November slower than 6.1% in October, the slowest pace of increase since Oct 2021.

Food prices increased 11.2% and energy rose 13.6%.

The Sensex and the Nifty indexes accelerated gains in the final hour of trading after buying picked up in large cap stocks. 

The Sensex index gained 721.13 points or 1.20% to 60,566.42, while the broader Nifty index added 207.80 points or 1.17% to close at 18,014.60.

Among the stocks traded on the BSE, 43 closed at new 52-week highs and 146 closed at new 52-week lows. 

The Indian rupee closed at 82.65 against U.S. dollar and the yield on 10-year Indian government bonds rose to 7.31%. 

In local trading, crude oil increased 2.9% to 6,621 a barrel and natural gas added 0.5% to 440 a thermal unit.