Tuesday, May 5, 2015Tuesday, May 5, 2015

Asian shares gain, count on Fed's support

Published on Jul 15, 2014 11:30 AM

TOKYO (Reuters) - Asian shares rose on Tuesday after Citigroup's earnings and a fresh round of merger and acquisition activity in the US healthcare industry lifted global share prices.

Yet, with elevated stock prices on Wall Street and elsewhere relying substantially on support from low interest rates, many investors now look to Federal Reserve Chair Janet Yellen's testimony in a US Senate committee.

"Markets expect her to stick to the stance that she will guide policy by watching the pace of recovery in the job market and the economy," said Hirokazu Kabeya, senior strategist at Daiwa Securities.

Asian stock markets showed little reaction to stronger-than-expected new loan and money supply data for China. Chinese banks lent 1.08 trillion yuan (S$215.90 billion) worth of new yuan loans in June, beating expectations of 915 billion yuan, central bank data showed on Tuesday, as Beijing stepped up efforts to stimulate the economy.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!