Japanese stocks opened higher on Wednesday, with key indicators of the Tokyo Stock Exchange (TSE), Nikkei-225 index rose 0.38 percent or 36.11 points to 9531.87 in the first minutes of trading after Wall Street ends strong.

Earlier, U.S. stocks ended slightly higher on Tuesday night, as the market ignored the earlier pessimism over the economic recovery, triggered by two disappointing reports on home prices and consumer confidence.

The blue-chip stock index Dow Jones Industrial Average rose 46.10 points on Tuesday (0.43 percent) to 10,858.14 at the close of trading, while the broader S & P 500 rose 5.54 points greater (0.49 percent) to 1147, 70 points.

Technology-heavy Nasdaq composite index edged up 9.82 points (0.41 percent) to 2379.59.

Catalyst for the swing back into positive territory was not clear to many analysts, with some pointing expectations that the Federal Reserve or the Federal Reserve closer to re-introduce the era spending to boost economic crisis.

“The numbers are terrible,” said analyst Mace Blicksilver of Marblehead Asset Management.

“The number is so bad that it will force the Fed to conduct quantitative easing … That’s what the market will flood the market with liquidity and raise stock prices.”

“It is almost as bad figures are good news,” said Blicksilver told AFP.

The Wall Street Journal reported that the U.S. central bank is considering limited, open purchase long-term Treasury securities to adapt to changes in speed of recovery.

Last week the Fed’s policy committee said “ready” to step up if the economy falters.

All three major indexes slumped in early trading after a report by private research firm said that U.S. consumer confidence grew more pessimistic about economic recovery, show business and labor market conditions deteriorate.

“Common sense of numbers today, with few exceptions, is that the world economy does not work too badly,” said Brown Brothers Harriman analyst, Marc Chandler, citing recent data showing improvement in the U.S. manufacturing sector.

Institute of Supply Management on Wednesday said that the index of manufacturing rose to 56.3 points from 55.5 percent in July. Readings above 50 percent indicates the manufacturing sector to grow. Strong U.S. figures followed data from China which showed manufacturing in the second-largest economy in the world also rose last month, reducing the fear economy was heading for a sharp decline in the second half of 2010. Positive economic data is needed to support risk-seeking investors. Against other major currencies, the dollar rose to 1.0156 Swiss francs from 1.0144 on Tuesday while the British pound rose to 1.5450 dollars from 1.5346.

“Rating Standard and Poor` s putting the long-term credit ratings of the Republic of Cyprus at `A +` on credit watch list with negative implications, “said international rating agencies. “Short-term credit monitoring following the rejection of the legislative branch on July 9, 2010 from two government proposals to raise revenue,” S & P credit analyst Trevor Cullinan said. The majority of members of parliament rejected government proposals to increase corporate taxes by one percent to 11 percent and increase the levy on the ownership of large properties that will generate annual revenues of 90 million Euros. Parliament said the government must cut bloated salaries alone before trying to raise taxes.

“We doubt whether the government will be able to encourage through fiscal consolidation measures are sufficient to overcome the significant decline in public finance,” added the rating agency. Cyprus must reduce the fiscal deficit of six per cent of GDP to below the upper limit of the European Union, three percent in 2012, which means the need to reduce a deficit of 500 million Euros in two years. This country has been under strict supervision for the excesses of the European Union deficit rules.

Finance Minister Charilaos Stavrakis has warned MPs on Tuesday that the government refused to step increase in receipts will get into hot water with Brussels and rating agencies. Nicosia plans to cut 700 public sector jobs this year and trying to save 140 million Euros in spending cuts ministries, while the salaries of ministers and MPs have been cut 10 percent.

For your information, oil prices declined after the Thomson Reuters / University of Michigan consumer confidence index released for the month of July. In the data shown, the consumer confidence index declined to a level of 66.5 from the position on June 76. This is the lowest level since August last year. It also predicted the index would drop songs to the position 74.

“Sentiment is negative macro impact. Outlook global growth outlook participate aggravate the oil market,” said Toby Hassall, analyst CWA Global Commodity Markets Pty in Sydney.

Notes only, the contract prices for August delivery declined 51 cents, or 0.7 percent to U.S. $ 75.5 per barrel on NYMEX. At 9:56 pm Singapore time, oil prices are in the position of U.S. $ 75.64 per barrel. On July 16 last, the contract is sagging oil prices 61 cents and perched on the level of U.S. $ 76.01 per barrel. Meanwhile, the price of oil futures contracts so far this year has decreased by 4.7 percent.

As you know, weeks ago, both regional and global exchanges fall into. Conditions that caused many financial reports of companies that do not fit the prediction. In the U.S., the Federal Reserve also lowered growth forecasts in the United States. As a result, many investors who choose to be cautious and wait until there are clarity that is more certain.

“After beating the level the Senate yesterday and escaped at the Congress a few weeks ago, the bill was now on the table the president,” wrote White House press statement quoted Bisnis.com from his official site, today.

Bloomberg reported the U.S. Senate approved the bill on reforming the financial sector will trigger a financial industry to making approaches to a number of regulatory bodies charged with preparing detailed rules. They will attempt to adjust the rules to the interests of industry.

“Implementation of this legislation will be a challenge. We are ready to cooperate with regulatory bodies to ensure that they have sufficient information to ensure the regulatory process is run effectively and efficiently as possible, “Edward said Yingling, president of the American Bankers Association, in a written statement which also showed disappointment over the bill.

Bill on the reform of the financial sector contains 2300 pages. This regulation will create a mechanism for the liquidation of the bankrupt financial companies that potentially cause market turbulence. Establishment of council regulator to regulate companies that can provide a threat to the economic system will also be conducted.

In addition, community service agencies in the U.S. central bank, the Federal Reserve, also will be established to monitor whether banks are doing the abuse of credit card and mortgage loans. A number of studies and fees still require interpretation by regulators and could take some time to be completed yearly. Rob Nichols, President of the Financial Services Forum, a trade group representing the chief executive officer of a large-scale financial company, said it would be with any regulatory agency to create a framework of financial supervision institution that ensures the safety, health, and systemic stability.

“There’s always the possibility of Wall Street lobbyists will succeed weaken the provisions in the bill during the rulemaking process,” explained the U.S. Senate Banking Committee Chairperson Christopher Dodd, who also got charged with preparing the Act.

Law on U.S. financial sector reform is a response to global crisis in 2008 that ‘forced’ the U.S. Congress bail-out program to inject $ 700 billion to big company including American International Group Inc. and Citigroup Inc.

Strategy and Finance Minister of South Korea Yoon Jeung Hyun expressed the need for world security network (global safety net) to tackle these capital flows.

“A number of developing countries would have the option to accumulate reserves in order to face the crisis. However, it is the high cost that is not the best choice. Global safety net is a good choice for all countries,” he said this afternoon.

He explained the IMF to prepare a more detailed plan to address capital flows that are too easy in and out and ensure global financial stability. However, IMF Managing Director Dominique Strauss Kahn assess actual Asia has shown resilience to the global financial crisis and even its economy continues to grow.

“The way to control the flow of incoming funds is of course dependent on each country, depending on the condition of each.”

Chief Investment Officer, China Investment Corporation Gao Xiqing said there should be cooperation between countries to solve the problems of protectionism and a weak social safety net.

“Countries in Asia should draw lessons from the past that shows domestic protection is not enough to endure external shocks. It should be no policy for dealing with capital inflows must have a concept of global financial safety net.”

According to him, this step will ensure economic growth as well as continue the policy of free trade and free markets.