Asian stocks at seven-month highs after Wall Street cracks more records By Reuters

Asian stocks at seven-month highs after Wall Street cracks more


© Reuters. A man walks past an electric screen showing Japan’s Nikkei and Shanghai Stock Exchange markets’ indices outside a brokerage in Tokyo

By Swati Pandey and Chibuike Oguh

SYDNEY (Reuters) – Asian shares climbed to a seven-month peak on Wednesday tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic.

MSCI’s broadest index of Asia-Pacific shares outside of Japan rose 0.3%, up for a third straight day to 570.80 points, a level not seen since late January.

The gains were driven by Australian shares, up 0.8% and South Korea, which added 0.6%. nudged up too though Chinese shares started weaker with the blue-chip CSI300 index off 0.7%.

Overnight, both the S&P 500 and set records soon after the opening bell following strong sales growth reported by major U.S. retailers including Walmart (NYSE:), Kohl’s (NYSE:) and Home Depot (NYSE:).

The closely-watched S&P 500 topped an all-time peak reached in February just before the onset of the COVID-19 pandemic drove the benchmark index to lows on March 23. The index has surged about 55% since then.

At just 126 days, that “is the fastest bear market recovery ever,” said Tapas Strickland, economist at Melbourne-based National Australia Bank (OTC:).

Nasdaq clocked its 18th record closing high since early June.

The U.S. Federal Reserve’s intervention in financial markets to maintain liquidity in the midst of the coronavirus pandemic has pushed risk assets to all-time highs and reduced demand for safe-havens, weakening the greenback.

Market optimism was also buoyed by data showing an acceleration in U.S. homebuilding to the most in nearly four years in July, signifying that the housing sector is emerging as one of the few areas of strength.

In addition, hopes of an interim fiscal package were re-ignited overnight with House Speaker Nancy Pelosi indicating a willingness to cut their proposals in order to seal a deal, NAB’s Strickland noted.

Markets were also paying close attention to minutes from the Fed’s recent meeting due later in the day “for any hints on what the Fed could announce regarding forward guidance come September,” Strickland said.

The Fed has cut rates to near zero to bolster business through the pandemic, sending the dollar to a 27-month low.

The was last unchanged at 92.23 from above-100 in March. The safe haven Japanese yen was a tad firmer at 107.51 versus the greenback.

The risk-sensitive Australian dollar traded near $0.7255, while the last bought $0.6611.

Gold flirted with key charted resistance of $2,000 an ounce to be last at $1,998.

U.S. were a shade weaker at $2,005.2.

Oil prices skidded as concerns grew that U.S. fuel demand may not recover quickly. [O/R]

down 26 cents at 45.20 and off 18 cents at $42.71.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME