Asian shares mixed, Nikkei up as Yellen remarks lift dollar

HONG KONG — Japanese shares rose Friday on the yen’s weakness while other Asian benchmarks wobbled after Fed chair Janet Yellen signalled that policymakers intend to raise interest rates soon.

KEEPING SCORE: Japan’s benchmark Nikkei 225 index added 0.8 per cent to 18,011.79 as the yen hit a six-month low, helping shares of the country’s big exporters. South Korea’s Kospi shed 0.4 per cent to 1,972.64 while Hong Kong’s Hang Seng rose 0.3 per cent to 22,318.47. The Shanghai Composite slipped 0.1 per cent to 3,206.64 while Australia’s S&P/ASX 200 crept up 0.2 per cent to 5,347.30. Benchmarks in Taiwan and Indonesia fell while Singapore’s rose.

RATE HORIZON: In remarks to Congress, Yellen suggested the U.S. central bank is on track to raise interest rates when policymakers hold their final meeting of the year in December. She said the improving U.S. economy has bolstered the case for raising rates, in comments that increased certainty for investors. The Fed raised its key interest rate in December 2015 but it’s still at ultralow levels that have fueled a multiyear global stock market boom. Economists forecast rates will go up by a quarter-point in December followed by two more hikes in 2017.

MARKET INSIGHT: “The greatest uncertainties, namely the election and the Fed rate hike, were significantly reduced over the last two weeks, which gave the market a good reason to refocus on the fundamentals of economic and corporate earnings,” said Margaret Yang, an analyst at CMC Markets.