Asian Shares Higher As Investors Look To Yellen

Asian stock markets rose on Tuesday, ahead of Federal Reserve Chairwoman Janet Yellen’s testimony to Congress, while the second-largest Chinese initial public offering this year surged on its debut in Shanghai.

The region tracked small overnight gains in the U.S., where Wall Street crept higher ahead of Ms. Yellen’s testimony, scheduled on Tuesday and Wednesday. Although Ms. Yellen isn’t expected to break any new ground, markets will be looking for clues on the central bank’s plans to pare back its bond-buying program in light of the recent disappointing U.S. economic data.

Hong Kong’s Hang Seng Index added 0.8%, Singapore’s Straits Times Index added 0.5% and the Philippines PSE climbed 0.3%. South Korea’s Kospi added 0.1%.

The Shanghai Composite Index was flat, following Monday’s 2% jump. The market’s focus was on the debut of Foshan Haitian Flavoring & Food Co., the second-largest Chinese IPO since the country lifted its more-than-one year moratorium in January. The company raised 3.8 billion yuan ($634 million) in its recent public offering. The surge in its shares of triggered the market’s circuit breakers and trade was halted after a 44% jump in early session.

Australia’s S&P/ASX 200 added 0.4%, as the country’s earnings session progressed.

Shares in Australia & New Zealand Banking Group rose 2.1% after the lender said that its first-quarter profit had jumped almost 21%, while the quality of the bank’s credit continued to improve. Cash profit, a measure that strips out one-time items and is closely followed by investors, rose 13%.

The world’s largest manufacturer of hearing implants, Cochlear plunged 9.9% in Sydney after the company made its second profit downgrade since June. The company is trying to win back trust with a new device, the Nucleus 6, after it had to recall a previous model in 2011 due to defects.

Australia’s largest investment bank was also in focus on Tuesday, as shares in Macquarie Group dropped 3.8% after the company said that client activity remains subdued in some businesses tied to capital markets, though it reaffirmed that its financial performance would improve this fiscal year as market conditions continue to improve.

Japan was closed for a public holiday on Tuesday, though the yen strengthened slightly against the U.S. dollar in Asian trade — last at ¥102.12, compared with ¥102.27 late Monday in New York.

Source : Marketwatch