US futures higher, Asian stocks rose as a candidate withdraws from Fed’s chairman race

Asian stocks started the week higher and U.S. futures rose after Larry Summers withdrew his name from consideration for Chairman of the Federal Reserve, relieving investor concerns about faster withdrawal of economic stimulus in the worlds biggest economy.

Mr. Summers was pointed to be President Barack Obamas first choice to succeed Ben Bernanke as the Fed chairman, and many investors had considered him to be a candidate that was more likely to limit the central banks aggressive moves to stimulate the economy. Another potential candidate for the job is Vice Chair Janet Yellen.

“Markets will take confidence from the view that a Yellen Fed is unlikely to put much pressure on economic growth rates by withdrawing monetary stimulus too soon.” said Ric Spooner, chief market analyst at CMC Markets.

US stock index futures also pointed to a strong start in the U.S., with S&P 500 futures up 18.3 points at 1700.30, while Dow Jones Industrial Average futures added 168 points to 15479.00.

The S&P 500 rose 2% last week to close within 1.3% of its record high. Treasuries trading is closed in Japan today for a holiday. They are scheduled to trade as usual in the U.K. and the U.S., according to the New York-based Securities Industry and Financial Markets Association’s website.

The U.S. central bank will reduce its $85 billion in monthly bond-buying by $10 billion this week, according to the median forecast of economists in a Bloomberg News survey.

Stocks across the Asian region were higher with the Hang Seng Index up 1.2% in Hong Kong, the S&P/ASX 200 up 0.6% in Australia and South Koreas Kospi 0.6% higher.

In corporate news, analysts and investors were disappointed that the iPhone 5C, the so-called cheaper version, will not actually be a budget-friendly option for many in emerging markets like China, where the average monthly income is below $1,000. The 5C is listed on Apple’s China website for about $733 without a contract. Analysts were quick to react. Apple suffered downgrades at Bank of America Merrill Lynch, Credit Suisse and UBS.

Intel Corp. shares were upgraded to a “buy” rating from “hold” by Jefferies, which also raised its price target to $30 from $27. “We believe INTC offers one of the best alpha generation opportunities” in the semiconductor industry, Jefferies wrote, highlighting the firms emphasis on research and development.