The Asian stock markets ended the trading session on Wednesday after the increased losses from the previous session. The growth came amid the renewed hopes for introducing stimulus measures in Europe and China.
On Tuesday, senior officials of the European Central Bank (ECB) said that the institution is still not relenting to introduce unconventional tools to support the economy. According to the President of the Deutsche Bundesbank, ECB may take action on the purchase of loans and other assets from the banks. The head of the Bundesbank has more weight in the debate on the future of the monetary policy on the continent. According to Jens Weidmann, the effectiveness of other monetary instruments is now very limited.
“The unconventional measures under consideration are largely uncharted territory. This means that we need a discussions about their effectiveness, damage and side effects”, said Jens Weidmann.
Meanwhile, the Chinese central bank again became the focus of the market participants after the recent disappointing data on manufacturing activity. According to many experts institution will resort to further boost by the end of 2014
The Japanese benchmark Nikkei 225 expanded with 0.37% to 14,477.16 points. The investors are waiting for the impending rise in the consumption tax, which is set for April 1st. Among the most profitable companies included into the index were Nintendo, which expanded with 3% and Sony and Komatsu, which grew with 2%. The energy sector has been hit by the news that the government will raise the fees for electricity from wind farms, while reducing the price of solar energy projects. The reason is the need to diversify the renewable energy sources. Hokuriku Electric Power added 1% and Kansai Electric Power wiped with 0.6%.
The Australian S&P ASX 200 rose with 0.75% to 5,376.75 points, the highest level in the last two weeks. The increase came after the central bank governor Glenn Stevens soften calls for a depreciation of the local currency in a speech to investors in Hong Kong. Australia New Zealand Banking, National Australia Bank and Westpac added 1% to their market cap. In the mining sector Yancoal Australia decreased nearly 8% after reaching an agreement to withdraw loan of 300 million USD.
The Chinese Shanghai Composite fell slightly with 0.18% to 2,063.67 points. The markets have been subject to the rumors of bankruptcy of one of the agricultural banks – Agricultural Bank of China.
The South Korean shares made their biggest one-day rise in the last month. The benchmark KOSPI rose with 1.19% to 1,964.31 points. Hyundai Motor added 4.5% and Kia Motors grew with 2.2% after the news that Hyundai is planning to sign a preliminary contract to build a fourth factory in China. The tech giant Samsung Electronics expanded by 3% to its market capitalization after the spokesman denied rumors that the company will postpone the presentation of the smartphone Galaxy S5 for April 11th.