2014.06.2702:06:34UTC+00Asian stocks mixed on likely interest rate hike

Asian stocks are in a mix as some lost and some gained as Federal Reserve Bank official James Bullard speculated a sooner-than-expected interest rate hike to come in March of 2015. The benchmark index is trading near a six-year high.

The MSCI Asia Pacific Index was steady at 145.44, 10:57 am, Tokyo time. It fell by 0.2% and then climbed by 0.1%. Yesterday witnessed a close for the gauge that was its highest since June of 2008 and is supposedly on the way to its seventh week of increase.

Japan’s Topix Index is down 0.2% following reports of an accelerated inflation, its fastest in 32 years, as driven by increased utility charges and sales-tax increase.

Information technology shares declined in the exchange led by Japan’s Oracle Corp. with a 4.4% loss following the company’s profit forecast failed to meet estimations. In South Korea, the largest exporter of  consumer electronics, Samsung Electronics Co. had the biggest drop among the shares in the regional index by losing 1%. Meanwhile in Tokyo, health care shares are higher with Ono Pharmaceutical Co. which reported that its melanoma drug is on its way to approval, surging by 5.4% and leading the pack.

Head of investment market research at Colonial First State Global Asset Management, Stephen Halmarick commented that the movement in the Asian market and the Fed comment were a timely warning indicating that the time for the Fed to begin increasing their interest rates is getting closer. Halmarick doesn't think that risk is factored into the market sufficiently enough.