Most of the Asian equity benchmarks are trading higher in the early deals on Wednesday, with investors indulging in some bargain hunting after recent weakness. However, the mood remains somewhat cautious following a weak close on Wall Street overnight. The Japanese stock market advanced, shrugging off a weak start on the back of a stronger greenback and a recovery in crude oil prices. Besides, the yen retreated from the strongest in four weeks against the dollar before the Federal Reserve concludes a two-day policy meeting today. On the economic front, Japan posted a merchandise trade deficit of 891.859 billion yen in November, remaining in the red for the 29th consecutive month. The headline figure beat forecasts for a shortfall of 992.0 billion yen following the downwardly revised 736.9 billion yen deficit in October. China’s benchmark stock index rose on speculation the government will loosen monetary policy and ease capital requirements that may allow brokerages to boost margin lending. Among other markets in the Asia-Pacific region, Shanghai and Malaysia are notably higher. South Korea and Indonesia are up marginally, while Taiwan, Singapore and Hong Kong are slightly lower.
Nikkei 225 gained 121.02 points or 0.72% to 16,876.34, KOSPI Index increased by 0.99 points or 0.05% to 1,905.12, Jakarta Composite soared 28.91 points or 0.58% to 5,054.94, Shanghai Composite rose by 29.94 points or 0.99% to 3,051.46 and FTSE Bursa Malaysia KLCI was up by 11.34 points or 0.68% to 1,685.28.
On the flip side, Hang Seng dropped 52.88 points or 0.23% to 22,617.62, Straits Times slipped 5.81 points or 0.18% to 3,209.28 and Taiwan Weighted was down by 83.71 points or 0.94% to 8,867.20.