There has been a large build up to Mr. Bernanke's two-day semi-annual monetary-policy testimony as investors wait for further clues on the direction of US stimulus measures.
Confusion has persisted in financial markets since Mr. Bernanke's first signal in May that stimulus would be tapered when the economy improves. Investors are looking for hints about the Fed's view of the U.S. economy and its plans on when to wind down its $85 billion-a-month bond-buying scheme.
The statement was followed by softer comments in the minutes of the June meeting of the central bank's Federal Open Market Committee (FOMC).
Bernanke last week said the central bank would not ease its stimulus before the economy was ready and that the U.S. needs "highly accommodative monetary policy" _ or low interest rates _ for the foreseeable future.
There is concern however, over disagreement among Fed officials about when the central bank should start scaling back its purchases of Treasuries and other assets. Esther George, the President of Kansas City branch of the Fed, and a voting member of the committee that sets the Fed's monetary policy, said Tuesday that the central bank should cut back on its stimulus as the labor market begins to recover.
Among regional bourses, Tokyo shares closed higher after recouping losses in late afternoon. The benchmark Nikkei 225 index added 0.11% to 14,615.04, while the Topix index was up 0.22% at 1,213.24.
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Tokyo market opened weaker as investors pocketed recent gains on tracking an overnight fall on Wall Street and the yen's rise versus the dollar. However, the market recouped lost ground late afternoon supported in part by expectations for higher earnings on the back of a stronger dollar and as BOJ June minutes revealed some members sought steps to calm bond markets.
Some Bank of Japan board members proposed offering longer-dated fixed-rate funds in its market operations to curb excessive interest rate fluctuations, minutes of the central bank's June policy-setting meeting showed on Wednesday, but others said the measure could be misinterpreted as a change in the BOJ's monetary policy framework. The members concluded that flexible operations under the BOJ's current framework would be enough to stabilize interest rates, deciding against putting the proposal to a formal vote. The BOJ left monetary policy unchanged at the June 10-11 meeting as widely expected, maintaining its pledge to expand the supply of money at an annual pace of 60 trillion to 70 trillion yen ($604-705 billion) to achieve its 2% inflation target in two years.
Australian stock market closed tad lower after seesawing between boundary lines as investors awaited for testimony by Federal Reserve boss Ben Bernanke at a congressional hearing. The benchmark S&P/ASX200 fell 0.1% to 4981.70, while the broader All Ordinaries was tad 0.04% lower at 4966.50.
BHP Billiton rose 2.3% to A$34.19 after the world's biggest mining company said fourth-quarter iron-ore production gained 17%. BHP revealed strong quarterly production numbers. Iron ore output was better than expected. Shipments of 54.0Mt in the quarter from the Pilbara were a new record and 14% higher than the previous record which was set in the December quarter of 2012. Coal sales from Queensland were equally strong resulting in the best quarter since 2010 with 8.7Mt shipped. Petroleum production was weaker than expected reflecting delays in Gulf of Mexico although this was marginally offset by better US shale production.
Chinese market declined for the first time in three days, as investors cashed out recent gains on fading speculation of government's stimulus measures to boost economy even in the face of slower economic growth. The benchmark Shanghai Composite index dropped 1% to 2044.92.
Premier Li Keqiang yesterday reiterated that China will keep stabilizing economic growth and controlling inflation risks while pushing forward reforms, but added that the country would not shift its policy direction because of a temporary change in economic indicators.
China attracted US$14.39 billion of FDI last month, a 20.12-percent increase from a year earlier, the Ministry of Commerce said today. The figure compared with a 0.29% gain in May. FDI totaled US$61.98 billion in the first six month of the year, up 4.9% year on year, the MOC said.
Shares of distilleries declined sharply in Shanghai on earnings concerns after reports from UBS was predicting Chinese liquor makers earnings growth will be less than 20% this year and mid-priced alcohol will be most affected by online shopping. Kweichow Moutai fell 2.1% to 186.92 yuan. Wuliangye Yibin Co, China's second-biggest liquor maker by market value, lost 2% to 20.12 yuan. Luzhou Laojiao Co slid 2.2% to 24.07 yuan.
Hong Kong's stock market closed slight higher in cautious trade, thanks to notable gains in financials and resources stocks. The benchmark Hang Seng Index finished 0.28% higher at 21371.87.
China Resources group companies fell across the board on alleged corruption scandal involving its group chairman Song Lin, filed by a reporter. CRE (00291) dipped 2.4% to HK$23.95. CRG (01193) fell 3.6% to HK$19.96. CRL (01109) softened 1.2% to HK$20.95. CRC (01313) inched down 0.5% to HK$4.3.
Singapore shares slipped as the city's below-view June external trade data gives downbeat leads ahead of US Federal Reserve Chairman Ben Bernanke's anticipated congressional testimony later in the global day. The STI fell 0.4% to 3,212.48, extending Tuesday's 0.4% loss.
Singapore's exports in June extended the longest run of declines since the global financial crisis, suggesting the island's economic growth last quarter may be lower than the government initially estimated. Non-oil domestic exports slid 8.8% from a year earlier, falling for a fifth month, the trade promotion agency said in a statement today.
Indian benchmark indices sink in the red to hit intraday low in mid-afternoon trade as European stocks reversed initial gains on Wednesday as investors turned cautious ahead of two-day congressional testimony from Federal Reserve Chairman Ben Bernanke which begins today, 17 July 2013. The Sensex, was 23.91 points or 0.12%, off 155.90 points from the day's high and up 43.44 points from the day's low. The market breadth, indicating the overall health of the market, turned negative from positive in mid-afternoon trade.
Bank stocks in the India fell for second day in a row as RBI's recent measures to tighten liquidity in the banking system will make it costlier for banks and financial companies to raise short-term funds. Private sector HDFC Bank fell after announcing Q1 result. FMCG stocks gained across the board as a bountiful rainfall this year has prepared the ground for bumper harvest. Shares of ITC, Dabur India, Nestle India and United Spirits scaled record highs. Opto Circuits plunged on high volume in highly volatile trade.
Elsewhere in the Asia, New Zealand's NZX edged up 0.05%, Indonesia's Jakarta Composite rose 0.75% and Malaysia's KLSE Composite added 0.13%. South Korea's Seoul Composite rose 1.1%, while Taiwan's Taiex closed tick lower.
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