FXStreet (Mumbai) - Stocks on the Asian bourses opened on a bearish note on Thursday, tracking a negative close on the Wall Street overnight. Although, the indices erased early losses and swung back higher, resuming the previous rally, as markets digest Yellen’s comments and rejoice improved risk sentiment. Fed Chair Janet Yellen said in her testimony on Wednesday that December's meeting would be a "live possibility" for a rate hike if incoming economic data remain upbeat. Australia’s S&P/ASX bucks the trend, SSEC breaks above 3500 The Japanese stocks extend gains from the previous session mainly driven a weaker yen versus the US dollar, which provides impetus to the exports-oriented stocks. Dec Fed rate hike possibility as reiterated by Yellen on Wednesday, gave fresh lift to the greenback, thus, driving USD/JPY to fresh two-month highs. The major now trades around 121.50 levels while the Nikkei advances over 1% to 19,122. The Australian benchmark, the S&P/ASX ditched its Asian counterparts and drops -1.03% to 5,189. The index is dragged lower by sharp losses in heavily-weighted banks. National Australia Bank (NAB) fell over 4.5% as the stocks went ex-dividend. Australia's second-largest lender by assets, Commonwealth Bank of Australia dropped 1.7% after the company announced first-quarter cash earnings of $2.4 billion. While miners and gold stocks struggled after gold prices fell to one-month lows yesterday. The Chinese indices are trading with size-able gains, with the mainland’s China’s Shanghai Composite (SSEC) index, rallying over 2% at 3,525. While Hong Kong’s Hang Seng jumps 2.27% to 23,079. Renewed optimism hit the Chinese stocks as markets believe SSEC break above 3500 levels make for bullish market settings. Guosen Securities says Shanghai Comp break above the 3500 level creates a bullish tone and that rally in financials signifies a return to the bull market. For more information, read our latest forex news.