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Asia stocks mixed after Bernanke signals low rates

Asian stock markets mixed after Fed chief signals low interest rates

Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington, Wednesday, Feb. 24, 2010, before the House Financial Services Committee hearing on the Semiannual Monetary Policy Report to the Congress. (AP Photo/Manuel Balce Ceneta)

On Wednesday February 24, 2010, 11:39 pm

HONG KONG (AP) -- Asian stocks were mixed Thursday after the head of the U.S. Federal Reserve reassured investors borrowing costs will stay at rock-bottom lows to revive the economy.

The dollar, meanwhile, declined against the yen and rose against the euro. Oil prices, up strongly overnight, inched above $80 a barrel.

Speaking to lawmakers, Fed Chairman Ben Bernanke again pledged to hold interest rates near zero "for an extended period" to help keep the economic recovery on track and Americans hard-hit by high unemployment and falling housing prices.

The news soothed U.S. investors unsure of the outlook for consumer borrowing rates since the Fed moved last week to hike the rate it charges banks for emergency short-term loans. Wall Street and European markets both closed higher.

But a number of Asian markets defied the upward swing.

In Japan, the Nikkei 225 stock average fell 19.04 points, or 0.2 percent, to 10,179.79. Shares of Toyota Motor Corp. edged up 0.6 percent after president Akio Toyoda, appearing before U.S. lawmakers, apologized for safety lapses that have led to deaths and widespread recalls.

South Korea's Kospi lost 0.7 percent to 1,602.36, while Australia's market fell 0.5 percent.

Elsewhere, Hong Kong's main index added 80.13 points, or 0.4 percen, to 20,547.87, and Shanghai's benchmark gained 1 percent to 3,052.21.

In oil, benchmark crude of April delivery was changing hands at $80.06 a barrel, up 6 cents from the previous session. The contract gained $1.14 overnight.

The dollar slid to 89.56 yen from 90.10 yen. The euro fell to $1.3484 from $1.3534.

Wednesday on Wall Street, the Dow rose 91.75, or 0.9 percent, to 10,374.16. The advance pared the Dow's loss for the week to 28 points.

The broader Standard & Poor's 500 index rose 10.64, or 1 percent, to 1,105.24, and the Nasdaq composite index rose 22.46, or 1 percent, to 2,235.90.