Breaking News
Home | Business | Markets | Asian markets resume rally on earnings hopes, trade optimism

Asian markets resume rally on earnings hopes, trade optimism

WT24 Desk

HONG KONG – Asian markets chalked up healthy gains Monday as investors cheered a strong start to the US earnings season, while Donald Trump’s treasury chief indicated trade talks with China were in their end-stage, AFP reports.

The gains put a regional equities rally back on track after last week’s
stutter, supported by data last week showing a sharp jump in credit growth in China as easing measures kick in, while exports beat expectations and
inflation perked up.

New York’s three main indexes provided a positive lead after Wall Stret
titan JP Morgan recorded a pick-up in profits, suggesting the economy remains in rude health and fuelling optimism for upcoming corporate reports.

“The environment of easier financial conditions is beginning to have an
impact on the broader economy,” Binay Chandgothia at Principal Global
Investors told Bloomberg TV.

“If that is the case and growth does pick up, you’ll see an uptick in
analyst expectations and earnings as well, which should help continue the
rally.”

In early trade Hong Kong was up 1.1 percent while Shanghai jumped 1.8
percent, with investors looking ahead to the release of Chinese growth
figures Wednesday.

Tokyo went into the break 1.5 percent higher, Singapore gained 0.2
percent, while Wellington added 0.4 percent and Seoul and Taipei both jumped 0.7 percent.

Manila and Jakarta were also up though Sydney edged down slightly.

Investors were back in a buying mood after last week’s gyrations that came
on the back of concerns about a possible new trade war between the US and the European Union as Trump threatened to hit the bloc with tariffs over
subsidies to aviation giant Airbus.

Buying was also being supported by comments from Treasury Secretary Steven Mnuchin, who said at the weekend that he was “hopeful we’re getting close to the final round of concluding issues” on the China trade talks.

The remarks were picked up as another positive sign that the trade war
between the world’s top two economies, which helped hammer global markets last year, could be nearing an end.

The International Monetary Fund said the world economy should start to
bounce back towards the end of the year, as long as China and the US resolve their differences.

US officials are also kicking off two days of trade talks with Japan later
in the day in Washington with both sides previously saying they wanted to
reach an agreement quickly.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 1.5 percent at 22,190.71 (break)

Hong Kong – Hang Seng: UP 1.1 percent at 30,232.57

Shanghai – Composite: UP 1.8 percent at 3,245.58

Pound/dollar: UP at $1.3090 from $1.3071 at 2040 GMT on Friday

Euro/pound: DOWN at 86.37 pence from 86.43 pence

Euro/dollar: UP at $1.1313 from $1.1298

Dollar/yen: UP at 112.01 yen from 111.99 yen

Oil – West Texas Intermediate: DOWN 41 cents at $63.48 per barrel

Oil – Brent Crude: DOWN 28 cents at $71.27 per barrel

New York – Dow: UP 1.0 percent at 26,412.30 (close)

London – FTSE 100: UP 0.3 percent at 7,437.06 (close)

Leave a Reply

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

*

x

Check Also

Bourses bounce back

WT24 Desk Investors showed appetite to buy few large cap stocks that steered the country’s ...

Hong Kong stocks open in negative territory

WT24 Desk HONG KONG – Hong Kong stocks fell in the first few minutes of ...