Asian markets mostly rose on Wednesday after US Federal Reserve head Ben Bernanke reaffirmed the central bank’s huge monetary easing scheme, but a stronger yen sent Tokyo lower.
Investors remained hesitant and the euro came under pressure after Italy’s election results which left no party in overall control, raising concerns that uncertainty in Rome could see the eurozone return to the dark days of crisis.
Tokyo fell 0.78 per cent by noon but Hong Kong rose 0.44 per cent, Sydney added 0.64 per cent, Shanghai climbed 1.14 per cent and Seoul was 0.18 per cent higher.
In testimony to Congress Bernanke said the Fed’s US$85 billion (HK$659.4 billion) a month bond-purchase programme aimed at holding down long-term interest rates and encouraging investment – known as quantitative easing – was still merited.
While warning that looming steep budget cuts could slow growth, he stressed high unemployment was a main challenge to the economy, adding that the risks of the programme – inflation, and risky behaviour in the financial industry – were being monitored closely.
Bernanke said the programme was “providing important support to the recovery”.