Asian Shares Rise After Turkey Rate Hike
BY Midnight Trader — 12:19 PM ET 01/29/2014
(CAPS BY ME, MG)
-- Asian stocks gained after Turkey's central bank more than doubled interest rates to stop a currency slide that roiled global markets.
The central bank raised its repurchase rate to 10% from 4.5% and boosted other key borrowing costs at a late-night emergency meeting. The overnight lending rate was raised to 12% from 7.75%.
Emerging markets have been roiled since the Federal Reserve started to taper its bond-buying program and China last week reported weak manufacturing data.
Argentina recently devalued its currency, and the Reserve Bank of India and Brazil unexpectedly raised rates.
The Federal Reserve is due out with a policy decision on Wednesday. Most economists expect a further tapering of the Fed's bond-buying program.
Around the region, South Korea's industrial output increased 3.4% in December from November, the biggest gain since June 2009.
Philippine Q3 on-year economic growth has been revised down to 6.9% from 7.0%.
Trading in China and Hong Kong is lightening ahead of the Lunar New Year. Shanghai and Hong Kong markets will be shut from January 30 and will resume trade on February 5.
In ADR news, ADVANTEST (ATE) WIDENED ITS FULL YEAR NET-LOSS FORCAST BY 14 TIMES. It now expects a net loss of 35.9 billion yen ($347.19 million), compared with a previous forecast for a loss of 2.5 billion yen.
Posco (PKX) reported a 60% annual drop in Q4 net profit.
The Nikkei ended up 2.7% at 15,383.91, the Hang Seng up 0.82% at 22,141.61 and Shanghai up 0.56% at 2,049.91.