Asian markets strengthen in countdown to Yellen testimony
Asian shares are enjoying minor gains while gold prices have hit a three-month high, as markets wait to hear the new head of the Federal Reserve Janet Yellen's testimony before Congress.
Markets are hoping Yellen will confirm that US interest rates will remain low and the Fed will give further detail regarding tapering.
The yen is marginally up against the dollar, though activity was curtailed by a Japanese holiday. The Nikkei is up 1.77 per cent and the Shanghai Composite Index is up 0.9 per cent. The Kospi has also showed signs of strengthening rising 0.4 per cent so far.
The Australian dollar has jumped to $0.9 – its highest level in a month. Australia enjoyed an improvement in business activity, combined with a near 10 percent annual increase in home prices.
In January, Australian business conditions rose to their highest level in close to three years. Australian firms are more confident with regards to their outlook on employment and orders.
However, there was some unwelcome news yesterday as Toyota Motor announced it would no longer be producing cars in Australia, with the loss of 2,500 jobs by 2017.