Asian trade: Asian markets are trading mixed, despite the positive momentum seen near the opening bell. Earlier in the day, U.S. markets closed higher, helped by a report from the housing market.
The market is being driven by optimism, after a report showed that there were 583K homes under construction in February, in annualized terms, compared with the 450K forecasted number, which could have been a record low. Additionally, the index rose 22% from January the biggest monthly gain since the early 1990’s.
Many believe that if the housing market bottoms, the economy might be getting closer to recovery. However, a breakdown analysis of the report showed that the higher than expected number was bounced offs its lows, rather than the bottom being formed. According to the Housing Permits report, the housing market topped in 2005, and fell to record lows during the last few months.
Some positive momentum might come ahead of the BoJ and the Fed, which are both expected to announce their new policy measures. As such, some investors wait for the two central banks to announce new lending programs, which are meant to stabilize the financial markets. Moreover, the BoJ recently made public that it will start issuing subordinated loans for banks.
Tonight, the Nikkei fell 13.16 points (0.17%) to 7,935.97. The Australian S&P/Asx slipped 5.20 points (0.15%) to 3,446.70.
Crude oil retreated as a report is expected to show that inventories increased. Crude oil for April delivery fell $0.70 to $48.60.
Gold fell as the equity markets are trading in the green. Bullion for immediate delivery declined $2.50 to $914.30.