Wednesday, February 29, 2012

Asian stock markets open down march 1 2012

Asian stock markets open down march 1 2012 ; Asian shares mostly fell on Thursday as Federal Reserve Chairman Ben Bernanke put the brakes on a recent rally by not signalling any further monetary easing to stimulate growth, while investors shifted their focus to manufacturing data due later in the day.

The European Central Bank's second liquidity injection operation came within market expectations, spurring the unwinding of positions built up ahead of the event on hopes that the money would further ease funding tensions in Europe and bolster risk appetite.

The MSCI Asia Pacific ex-Japan fell 0.3 percent after rising 1.4 percent to a seven-month high on Wednesday, taking its cues from U.S. stocks which were weighed down by Bernanke's comments.

Japan's Nikkei opened up 0.5 percent and extended its gains in early trade, but was still below a seven-month high hit on Wednesday.

The euro stood steady at $1.3328 after falling more than 1 percent on Wednesday to a nearly one-week low of $1.3315 as the ECB extended 530 billion euros ($709 billion) in cheap, 3-year loans, with more than 800 banks applying for funding, up from 523 banks in its first auction in December.

The dollar held its ground after rising strongly on Wednesday when Bernanke, while offering a cautious view of the U.S. economy, stopped short of signaling further Fed bond purchases, disappointing investors who were hoping for more stimulus.

"The U.S. dollar pushes higher while equities retreat alongside metals as Bernanke gives a nod to inflation, departing from his last three speeches where he accentuated the extension of extremely low interest rates into 2014," said Ashraf Laidi, chief global strategist at City Index Group.

Bernanke described rising gasoline prices as "primarily reflecting higher global oil prices -- a development that is likely to push up inflation temporarily while reducing consumers' purchasing power," an acknowledgement of inflationary pressure, Laidi said.

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