Nikkei 225 drives Asian markets higher on Yellen’s testimony

The stocks on the Asian bourses follow their Wall Street counterparts higher, after Fed Yellen’s commentary indicated Dec rate hike a done deal, and therefore restored confidence in the markets. As a result, the US dollar index scored new thirteen-year highs amid strengthening US treasury yields.

The Japanese Nikkei 225 index emerged the best performer so far, taking advantage of a stronger USD/JPY, which boosts the exporters’ stocks on the index. USD/JPY trades at fresh five-month highs of 110.69, up +0.50% on the day.

While the Australian benchmark, ASX 200, trades with moderate gains amid weaker commodities and upbeat China’s housing prices data. Further, the CBOE Volatility Index (VIX), a fear gauge, drops over 2%, suggesting risk-on market profile and hence, adds to the  upbeat sentiment around the Asian indices.

Meanwhile, Japan’s Nikkei 225 rises almost +1% to 18,035, the Australian S&P/ASX 200 trades +0.25% higher around 5,350. The Chinese equities trade modestly flat, with the benchmark Shanghai Composite index just above 3,200 levels, while CSI300 index trades near 3,440. Hong Kong markets trade +0.18% higher around 22,300 levels.

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