By Daniel Inman
Stocks in Japan and South Korea declined Thursday after the U.S.
Federal Reserve left policy unchanged overnight, while Australia
managed to move higher at the end of a healthy month for regional
markets.
The Fed met expectations by leaving its stimulus program
unchanged at its policy meeting, though it did surprise with its
upbeat assessment of the economy. Some investors were looking for
the central bank to downgrade its economic outlook after the
government shutdown and budget impasse earlier this month.
In fact, the government shutdown was a major focus for global
markets in the first half of October. Asian stocks proved resilient
through the drama, and most markets in the region look set to post
respectable gains for the month.
The Philippines' PSE Composite and Indonesia's JSX were up 6.6%
and 6%, respectively, month to date, while Australia recorded a
4.1% gain. China has been a laggard in October, as a rise in local
interbank lending rates resulted in the Shanghai Composite giving
back some of its gains from earlier in the month and was last down
0.7% so far in October.
On Thursday, Asia made small moves as the Fed failed to provide
to a major surprise markets.
The Nikkei Average fell 0.2%, as the yen (USDJPY) strengthened a
touch in Asia -- recently at Yen98.46 to the dollar, compared with
Yen98.51 late Wednesday in New York.
Australia's S&P/ASX 200 rose 0.3%, and South Korea's Kospi
dropped 0.4%.
The regional earnings season progressed, with markets reacting
to results in Australia and Japan.
National Australia Bank (NAUBF) fell 1.9% in Sydney after the
lender posted full-year earnings in line with market forecasts,
though costs were ahead of expectations.
In Tokyo, ANA Holdings (ALNPF) declined 5% after the airline
lowered its 2013 fiscal-year net profit forecast by 65% on higher
fuel costs and slow service expansion because of delays in Boeing
(BA) 787 Dreamliner deliveries.
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