Asian stocks bounce back from losing streak

Asia stocks are up after four days of losses.

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By :  ,  Financial Analyst

Asian stock markets rose today (January 29th), erasing some of the losses sustained over the course of the last few days.

Markets broke a four-day losing streak following an announcement from Turkey that it was set to increase interest rates. The decision was made after an emergency meeting was called.

China has also announced that it is set to inject more funds into its financial system and this provided another boost to the Asian markets during trading today, reports BBC News.

In Japan, the Nikkei 225 index rose by 2.7 per cent, while the Hong Kong Hang Seng was up by 1.1 per cent and South Korea's Kospi saw a 1.2 per cent rise over the course of the session.

Fed decisions

Kelly Teoh, from IG Markets, explained that another factor set to have an impact on the Asian stock markets in the coming days will be the next decision by the Federal Reserve in the US.

She said: "The question on whether the Fed will continue to reduce stimulus by $10 billion (£6.02 billion) is mostly priced in. It is accepted by the markets that the Fed will not want any more shocks in the market, thus the plan is to slowly take their foot off the pedal."

Ms Teoh added: "The statement of where they see the US economy, and any mention of the recent emerging markets vulnerability, will be what investors look out for."

After four days on the run of losses across the main Asian stock markets, investors will have been pleased to see the recovery during trading today. The solid gains recorded by the Nikkei also offer an indication of how successful 2014 could be for the index, which outperformed major global rivals such as the Dow Jones and the FTSE 100 in London last year.

On Monday, the Nikkei had lost 2.1 per cent of its value, showing the market has been particularly volatile over the course of the week so far.

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