AFP, Hong Kong :
Asian markets largely rose on Wednesday, tracking a Wall Street rally after the head of the Federal Reserve expressed confidence in the US economy despite fears of a global trade war.
Federal Reserve chief Jerome Powell offered a positive outlook citing a strong job market and inflation figures in line with Fed targets, sending US stocks higher.
“Powell’s testimony was music to investor’s ears as the Dow gained for the 4th consecutive day while the Nasdaq hit a new high-water mark”, said Stephen Innes, head of Asia-Pacific trading at OANDA.
But Powell acknowledged uncertainty over the “outcome of current discussions over trade policy”, with US President Donald Trump hitting out at China and other economic partners as he adopts an aggressive “America First” policy.
Fears about an all-out China-US trade war continue to rattle investors, with both sides lodging counter-complaints at the World Trade Organization after recently imposing and threatening further tariffs on billions of dollars worth of goods.
Washington’s traditional allies Japan and the EU have also not been spared from hefty US tariffs.
In a move described by officials as a “clear message” against protectionism, the EU and Japan signed a sweeping free trade deal on Tuesday, eliminating tariffs for a wide range of products from Japanese cars to French cheese.
Japanese exporters advanced in Wednesday trading with Toyota rising 1.35 percent to 7,473 yen, Panasonic gaining 0.62 percent to 1,452 yen and Olympus ending up 0.90 percent at 4,450 yen.
Tokyo rose 0.4 on the back of a cheaper yen as the dollar strengthened following Powell’s upbeat view of the US economy. Singapore also gained 0.3 percent while Sydney climbed 0.7 percent.
But Shanghai lost one percent while Hong Kong edged down 0.3 percent.
And Seoul fell 0.3 percent as South Korea’s finance minister warned that an all-out trade war between the US and China would have grim implications for the export-reliant country.
Asian markets largely rose on Wednesday, tracking a Wall Street rally after the head of the Federal Reserve expressed confidence in the US economy despite fears of a global trade war.
Federal Reserve chief Jerome Powell offered a positive outlook citing a strong job market and inflation figures in line with Fed targets, sending US stocks higher.
“Powell’s testimony was music to investor’s ears as the Dow gained for the 4th consecutive day while the Nasdaq hit a new high-water mark”, said Stephen Innes, head of Asia-Pacific trading at OANDA.
But Powell acknowledged uncertainty over the “outcome of current discussions over trade policy”, with US President Donald Trump hitting out at China and other economic partners as he adopts an aggressive “America First” policy.
Fears about an all-out China-US trade war continue to rattle investors, with both sides lodging counter-complaints at the World Trade Organization after recently imposing and threatening further tariffs on billions of dollars worth of goods.
Washington’s traditional allies Japan and the EU have also not been spared from hefty US tariffs.
In a move described by officials as a “clear message” against protectionism, the EU and Japan signed a sweeping free trade deal on Tuesday, eliminating tariffs for a wide range of products from Japanese cars to French cheese.
Japanese exporters advanced in Wednesday trading with Toyota rising 1.35 percent to 7,473 yen, Panasonic gaining 0.62 percent to 1,452 yen and Olympus ending up 0.90 percent at 4,450 yen.
Tokyo rose 0.4 on the back of a cheaper yen as the dollar strengthened following Powell’s upbeat view of the US economy. Singapore also gained 0.3 percent while Sydney climbed 0.7 percent.
But Shanghai lost one percent while Hong Kong edged down 0.3 percent.
And Seoul fell 0.3 percent as South Korea’s finance minister warned that an all-out trade war between the US and China would have grim implications for the export-reliant country.
