Asian markets closed mix on the final trading of the week. Investors cheered the rebound on Wall Street yesterday and the German economic data firmed bull’s strength in the market. However, traders are still concerned that the Fed’s tapering program could trigger outflow of funds from the emerging markets. If the tapering does takes place this could certainly result in re pricing of the treasury yield and the 10 year yield could increase further by almost 2%.
The Nikkei Index was the best performing index during the session which closed with a gain of 2.21%. The index is down nearly -0.67% for the past five days. The Shanghai index was the worst performer and closed with a loss of 0.49%. Finally, the Hang Seng index also closed in a negative territory and closed with a loss of 0.18%.
Exporters gained once again in Tokyo on the back of a weaker yen and shares of Mitsubishi Corp gained nearly 3.4%. Yamaha Motor Co. and Kawasaki Heavy industrial both gained nearly 4.9% during the session. Miners also climbed and shares of Sumitomo Metal Mining Co gained 4.3%.
European stock markets are trading lower during the early hours of trading. Investors are cautious ahead of the second quarter GDP estimate for the sterling economy which is due at 08:30 GMT. The forecast is for 0.6% while the previous reading was 0.6% as well. The FTSE 100 Index is the best performing index during the session which is trading up with a gain of 0.16%. The index is down nearly -1.96% for the past five days. The DAX index is the second best performer and is also trading up with a gain of 0.01%. The CAC 40 and the IBEX are trading lower with a loss of -0.59%, and -0.27% respectively.