SYDNEY (AP) – some welcome relief got Asian stocks on Wednesday after upbeat U.S. earnings reports drove a recovery on Wall Street and helped restore a little confidence in the emerging market stocks and currencies.
file photo: a man in a business House is reflected in an electronic stock quotation Board outside a brokerage in Tokyo, Japan, 11th October 2018 REUTERS/Kim Kyung-hoon
Japan’s Nikkei galloped out of the gate with a rise of 1.7 percent. but still has a way to go to recoup losses last week.
“the Nikkei seems to have bottomed”, said Soichiro Monji, senior economist at Daiwa SB investments.
“the latest tumble dryer was not driven by compelling factors – can market had to adjust after its sharp rally and upcoming corporate earnings should demonstrate sound economic fundamentals.”
MSCI broad index of Asia-Pacific stocks outside of Japan added 0.7 percent and South Korea 1.2 per cent, while Spreadbetters showed profits for the major European exchanges open.
Chinese blue chips remained with a rise of 0.2 percent and thus threatened, the mood to sour.
on Wall Street, the three main indices had tallied its biggest one day percentage gains since March. The Dow jumped 2.17 percent, while the S & P 500 2.15 percent and the NASDAQ 2.89 percent climb. [.N]
Netflix Inc shot 12 percent higher after the market close the results far exceeded expectations of the market with 7 million customers added streaming.
the blockbuster output shares by alphabet Inc, Facebook Inc and Amazon.com Inc posted up about 1 percent in extended trading.
four form the so-called fishing group of growth companies, which has lost some of its momentum in the last few months after leading gains in the last few years.
“most have last week volatility spike debt on which systematic funds liquidate positions, such as the short volatility trading quickly settled”, Chris Weston, head of research at brokers Peppertsone said.
“in turn enabled distributor of macros in the direction of micro, realignment and predictable, solid profitability of U.S. companies.”
the US economic news was also robust, especially a sharp rise of jobs to a new record.
my biggest threat
all this cheer favors beaten-down currencies in emerging markets while taking some steam out of the safe-haven yen. The MSCI emerging market currency index rose a third session.
the most recent survey of global fund managers by BofA Merrill Lynch found emerging-markets currencies saw as the most undervalued per US dollar.
the dollar itself up on the yen at 112.35 but flat on the euro was at $1,1570. against a basket of currencies idled the dollar at 95.123 over night a two-week trough have touched.
doesn’t help the dollar criticism of the Federal Reserve by President Donald Trump, was fresh told Fox business network: “My biggest threat is the United States.”
Trump has castigated the Central Bank for increasing interest rates recently.
“while nothing should mean such insults not in reference to what actually does the fed, it is a factor that the sentiment towards the dollar something undermining”, said Ray Attrill, head of FX Strategy at NAB.
“it’s a factor, if also slightly to the recent weak US dollar.”
minutes of the last Fed meeting are due later Wednesday and to show that policy makers still expected for more gradual tightening.
in commodity markets, gold at $1.221,11 and shortly before the recent 11-week highs instead.
oil prices rose as a surprise, industry data showed decrease in United States crude oil inventories. There was the danger that threatened U.S. sanctions on the Iran interfere with crude supply from the Middle East and growing tensions with exporter Saudi Arabia could top.
U.S. crude rose 9 cents to $72,01, while Brent crude oil 81,45 4 cents per barrel added.
edit our standards by Shri Raven and Sam Holmes