Asia: Mostly higher on Fed stand

HONG KONG: Asian markets mostly rose yesterday after US Federal Reserve head Ben Bernanke reaffirmed the central bank's huge monetary easing scheme, but a stronger yen sent Tokyo lower.

Investors remained hesitant and the euro came under pressure after Italy's election results which left no party in overall control, raising concerns that uncertainty in Rome could see the eurozone return to the dark days of crisis.

Tokyo closed down 1.27 per cent, or 144.84 points, at 11,253.97, Sydney was up 0.66 per cent, or 33 points, at 5036.6, and Seoul rose 0.20 per cent, or 4.03 points, to 2,004.04.

Shanghai closed up 0.87 per cent, or 19.88 points, at 2,313.22.

In testimony to Congress Bernanke said the Fed's US$85 billion a month bond-purchase programme aimed at holding down long-term interest rates and encouraging investment - known as quantitative easing - was still merited.

While warning that looming steep budget cuts could slow growth, he stressed high unemployment was a main challenge to the economy, adding that the risks of the programme - inflation, and risky behaviour in the financial industry - were being monitored closely.

In other markets:

* Wellington rose 0.88 per cent, or 37.40 points, to close at a five-year high 4,276.32.

* Manila closed 0.22 per cent lower, shedding 14.40 points to 6,616.27.

* Taipei rose 0.22 per cent, or 17.08 points, to 7,897.98.

* Bangkok slipped 0.80 per cent, or 12.27 points, to 1,518.05.

* Jakarta ended up 1.14 per cent, or 53.38 points, at 4,716.42.

* Mumbai rose 0.72 per cent, or 137.27 points, to 19,152.41. AFP