Asian shares, euro firmer on Fed easing hopes

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%, while Nikkei opened up 0.5%

Asian shares edged higher on Wednesday on hopes the US central bank has left the door open for more stimulus measures later in the year, after chairman Ben Bernanke outlined a gloomy view of the US economic recovery.

Quarterly earnings from the likes of Goldman Sachs and Coca-Cola came in better than expected, calming concerns about the impact of the global slowdown and underpinning mild gains in stocks.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3% while Japan's Nikkei stock average opened up 0.5%.

In his testimony to the Senate Banking Committee, Bernanke said the economic recovery was being held back by anxiety over Europe's debt crisis and the path of US fiscal policy, and he expressed unease over a stagnant jobs market.

Analysts said the Bernanke's comments on the economy, especially on the jobs market, suggested the central bank could opt for further monetary stimulus.

Oil prices were slightly weaker with US oil down 0.3% in early Asian trading.

Top mining companies Rio Tinto and BHP Billiton both were down over a percent, after BHP followed its larger rival in setting out higher production forecasts amid risks of cooling demand from top customer China.

BHP said it expects to lift Australian iron ore output by 5% in the 2013 financial year.

The tech sector in Asia could come under pressure through the day after top chipmaker Intel Corp reduced its growth forecast, reinforcing fears that a wavering global economy and a lack of consumer interest are dampening personal computer sales.

Currencies

Bernanke's mixed message provided some support to the euro after a choppy session overnight and was trading higher against the dollar.

It was last at $1.2293, below Tuesday's one-week high of $1.2317 but well off a two-year low of $1.2162 hit last week.

Bernanke will address the House Financial Services Committee later on Wednesday, following his testimony to the US Senate Banking Committee on Tuesday.

The Aussie was slightly higher at $1.0311, not far from resistance at the July 5 high of $1.0330.

The dollar bought 79.02 yen, moving away from a one-month low of 78.68 yen hit on Monday but likely to face pressure from selling by Japanese exporters on any move over 80 yen.