Investing.com - Asian stocks rose during thin trading on Tuesday
as the Japanese corporate service price index rose more than
expected and the investors prepared for the lunar holiday.
Released by Bank of Japan on Tuesday, December's year-on-year
corporate service price index rose by 1.3% as against the
expectation of a gain of 1.1%. The previous gain was 1.2%.
Singapore to China and Hong Kong and Taiwan are gearing up for
the coming holiday weekend, with the marking of Lunar New Year on
Friday, and market closures across many parts of the region.
BoCom rose 1.3%, CCB was up 0.3% and China Merchants Securities
Hong Kong's Hang Seng Index rose 0.15%, China's Shanghai
Composite index rose 0.08%, while Japan's Nikkei 225 Index was up
On Monday U.S. stocks fell amid ongoing fears that
emerging-market economies are due to hit a soft patch, while
uncertainty over the Federal Reserve's stimulus program also nudged
Fears emerging markets are due to cool, especially if the
Federal Reserve continues to taper stimulus programs, sent stocks
worldwide falling on Monday, with fears that contagion from Turkey
and Argentina could spread elsewhere fraying nerves even
The Federal Reserve will conclude a monetary policy meeting on
Wednesday, and investors held firm on expectations that monetary
authorities will make fresh cuts to its USD75 billion in monthly
bond purchases due to several months of improving U.S. economic
Stimulus tools such as Fed purchases of Treasury holdings and
mortgage debt suppress interest rates to spur recovery, thus
sending investors to asset classes like stocks in industrialized
and emerging markets.
While talk of tapering the program reflects a view that the
economy is improving, it also creates uncertainty as to how stocks
will react without a monetary crutch.
Elsewhere, the Census Bureau reported earlier that sales of new,
single-family houses in December came in at a seasonally adjusted
annual rate of 414,000, missing market calls for a 475,000 reading
and also below November's revised figure of 445,000.
The figure was still well above the December 2012 reading of
396,000, and the data also revealed that inventories remain lean
and prices continue rising.
Harsh winter weather may have affected sales in December as
Later today, the U.S. is to release data on durable goods
orders, a leading indicator of production, as well as what will be
a closely watch report on consumer confidence.
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