Stocks Extend Advance Into Asia; Dollar Weakens:
- FedEx, Nike boosted US sentiment; HK leads gains in Asia
- Oil price increase extends into a fourth day; yen climbs
Stocks rallied in Asia Thursday, putting a gauge of the region’s equities on course to snap five days of declines after US shares climbed on improved consumer confidence and better-than-expected earnings.
The biggest moves were in Hong Kong, where the benchmark index rose about 3%. Technology and property companies led the charge after a slew of comments from regulators on supporting the broader economy and real estate developers.
Shares also jumped in Japan, South Korea and Australia. US and European futures were higher following a surge of 1.5% in both the S&P 500 and the Nasdaq 100 on Wednesday.
Treasuries rose slightly in Asia after a mixed US session as the immediate fallout from the Bank of Japan’s surprise policy shift began to ebb.
The 10-year Japanese government bond yield targeted by the BOJ fell to 0.41%, compared with the central bank’s new upper limit of 0.5%. Government bond yields were up in Australia and down in New Zealand.
The yen resumed its advance after a small loss Wednesday. It rallied the most since 1998 on Tuesday. The dollar fell versus its Group-of-10 counterparts.
[…]
“The Hong Kong and China market may do a bit better,” said Redmond Wong, strategist at Saxo Capital Markets, noting that a lot profit-taking was now out of the way and there has been some subsiding of fear over Covid.
Still, the market remains wary given a surge of infections in Shanghai and concerns in Beijing earlier in the week amid reports of crematoriums being overwhelmed with bodies.
[…]
Key events this week:
- US GDP, initial jobless claims, US Conf. Board leading index, Thursday
- US consumer income, new home sales, US durable goods, PCE deflator, University of Michigan consumer sentiment, Friday