Forexpros – Asian stock markets were mixed during late Asian trade on Monday, after the European Central Bank dismissed media reports that it may set limits on the yields of euro zone government bonds, calling them misleading.
During late Asian trade, Hong Kong’s Hang Seng Index declined 0.5%, Australia’s ASX/200 Index added 0.4%, while Japan’s Nikkei 225 Index shed 0.2%.
German magazine Der Spiegel reported over the weekend that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
Responding to the report, the EBC said it was “absolutely misleading” to report on decisions that have not yet been taken, and added that it would act “strictly within its mandate”.
Investors were looking ahead to a series of euro zone meetings later in the week to discuss measures to ease the debt crisis.
Luxemburg Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.
Market participants were also anticipating the minutes of the Federal Reserve’s August policy meeting later in the week, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Upbeat U.S. economic data released last week indicated that the economy may be stabilizing and tempered expectations for another round of quantitative easing by the Fed.
In Tokyo, the Nikkei dipped slightly, but remained close to the highest level since May, as gains in financial stocks supported the index.
Mitsubishi UFJ Financial Group saw shares rise 1.1%, Mizuho Financial Group added 0.75%, while brokerage firms Nomura Holdings and Daiwa Securities saw shares advance 2.1% and 0.65% respectively.
Shares in troubled electronics maker Sharp climbed 2.9% after a report in the Yomiuri newspaper said the company plans to cut 15% of its global workforce.
Elsewhere, in Hong Kong, shares in index heavyweight CNOOC tumbled 4% after reporting a wider-than-expected drop in first half net profit.
China’s largest offshore oil producer said net profit for the six months ended June 30 fell 19% to CNY31.87 billion from CNY39.34 billion a year earlier. Revenue during the period fell 5% to CNY118.27 billion.
Meanwhile, shares in Australia edged modestly higher after minutes from the Reserve Bank of Australia’s most recent policy setting meeting published earlier indicated that policy makers were satisfied with the current 3.5% cash rate level.
Looking ahead, the outlook for European stock markets was mildly higher, buoyed by persistent hopes for progress on tackling the debt crisis in the euro zone.
The EURO STOXX 50 futures pointed to a gain of 0.2% at the open, France’s CAC 40 futures added 0.2%, London’s FTSE 100 futures eased up 0.2%, while Germany’s DAX futures pointed to a rise of 0.3% at the open.
Trade looked likely to remain quiet on Tuesday, with no significant economic data releases on the calendar, while volumes were thin with many market participants on summer holidays.
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