China stocks drive Asia higher on renewed optimism

By FXStreet FXStreet (Mumbai) – Stocks on the Asian bourses opened on a bearish note on Thursday, tracking a negative close on the Wall Street overnight. Although, the indices erased early losses and swung back higher, resuming the previous rally, as markets digest Yellen’s comments and rejoice improved risk sentiment.

Fed Chair Janet Yellen said in her testimony on Wednesday that December’s meeting would be a “live possibility” for a rate hike if incoming economic data remain upbeat.

Australia’s S&P/ASX bucks the trend, SSEC breaks above 3500

The Japanese stocks extend gains from the previous session mainly driven a weaker yen versus the US dollar, which provides impetus to the exports-oriented stocks. Dec Fed rate hike possibility as reiterated by Yellen on Wednesday, gave fresh lift to the greenback, thus, driving USD/JPY to fresh two-month highs. The major now trades around 121.50 levels while the Nikkei advances over 1% to 19,122.

The Australian benchmark, the S&P/ASX ditched its Asian counterparts and drops -1.03% to 5,189. The index is dragged lower by sharp losses in heavily-weighted banks. National Australia Bank (NAB) fell over 4.5% as the stocks went ex-dividend. Australia’s second-largest lender by assets, Commonwealth Bank of Australia dropped 1.7% after the company announced first-quarter cash earnings …read more

Source:: FX Street