FXstreet.com (Barcelona) - Asian markets are going through strong advances on Wednesday on the back of upbeat U.S. data and comments by Bernanke, who sees U.S. economy coming out of the recession. In Forex markets, risk appetite has brought the Euro and Yen higher.
Japanese Nikkei Index rises 1.6%, while Hong Kong hang Seng Index rose 1.8% and South Korean Kospi Index advanced 2.3%. India Sensex went 1.1% up, while Taiwan's Index advanced 0.9% and Australian benchmark Index advanced 2.2%. On the negative side, China's Shangai Composite Index fell 1.7%.
Investors optimism has been fuelled on Wednesday bu U.S. retail sales, which have posted in August their largest increase on the last three years, while the New York Fed manufacturing Index reached its highest level since 2007.
Euro and Yen advance
EUR/USD has picked up during U.S. and Asian session and, after having retreated to 1.4560 low before the release of U.S. data, the Euro has been rallying ever since to reach a fresh 9-month high at 1.4685. At the moment, the Euro trades at 1.4680.
GBP/USD remains weak after being hammered by BoE governor's comments; the Pound, which dropped from 1.6660 high on Tuesday, to a one-week low at 1.6400, attempted to recover during Asian session but it was rejected at 1.6515 and the pair dropped to levels around 1.6450 at the moment of writing.
USD/JPY rebound from 90.20 low reached its highest level on Tuesday's European session at 91.75, and the pair pulled back to trade in a range from 90.80 to 91.15 during Wednesday's Asian session.