Asia shares to edge up, gains likely limited

ASIAN stocks are likely to edge higher on Wednesday, buoyed by more upbeat company reports, but gains may be limited by a cautious economic assessment from US Federal Reserve Chairman Ben Bernanke. Asian stocks listed on Wall Street rose 0.7 per cent, while MSCI’s measure of Asia Pacific stocks excluding Japan up 0.2 per cent. The main US share indices rose on Tuesday, buoyed by solid profit from Caterpillar Inc, but gains were limited by investor caution after a recent earnings-fuelled rise as well as warnings from Caterpillar that the current quarter will be tough. Bernanke said in testimony before a congressional panel that mounting joblessness, slumping home values and tight credit were likely to curb consumer spending.

The S&P 500 hit a fresh intra-day 2009 high before closing up 0.4 per cent, while the Nasdaq eked out gains of 0.4 per cent for its 10th successive winning session, its longest run of gains in 12 years. Japanese shares are likely to rise, with Nikkei futures traded in Chicago up 0.9 per cent from the Osaka close of 9,650. Australian markets are likely to edge lower, with September index futures at 4,044, down from the underlying S&P/ASX 200 index’s close on Tuesday. The dollar rebounded from six-week lows against the euro on Tuesday after Bernanke’s cautious assessment of the economy revived the dollar’s safe-haven appeal. Oil touched a two-week high above US$65 on Tuesday as positive earnings reports fed into hopes for an economic recovery and the revival of global energy demand. - Reuters