Asian stocks rise on Wall Street rally, currencies mixed


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Asia’s emerging share markets rose on

Wednesday, buoyed by gains on Wall Street as more companies

reported strong earnings while currencies found relief on the

U.S. dollar’s retreat.

Equities in Indonesia climbed 1.7% and were set for

their best day in nearly two months, followed by Singapore

stocks, which advanced 1.3% to eye its biggest intraday

percentage jump in two months. Stocks in the Philippines

and Malaysia also rose.

Some Asian currencies regained their poise as the U.S.

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dollar continued its decline after markets priced in a higher

likelihood of a larger rate hike by the European Central Bank

(ECB) on Thursday.

The South Korean won rose 0.5%, while both the

Singapore dollar and the Malaysian ringgit were

slightly firmer. The Philippines peso and the Thai baht

bucked the trend to fall 0.2% each.

U.S. stocks bounced back sharply on Tuesday as more

companies joined big banks in reporting earnings that beat

forecasts. That offered some respite to investors worried about

higher inflation and the U.S. Federal Reserve’s rate hikes

denting the corporate bottom line.

Netflix Inc predicted that it would return to

customer growth this quarter, after a smaller-than-expected drop

in subscribers in the second quarter.

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Investors had reacted positively to corporate earnings and

were encouraged to invest in riskier assets, said Jun Rong Yeap,

markets strategist at IG, adding the market had shrugged off the

cautious take by companies on the economic outlook.

“Other risk catalysts, like the anticipated restart of

Russian gas flows via Nord Stream 1 pipeline and the U.S.

Federal Reserve’s lesser-than-expected rate hike are also aiding

the improved risk appetite,” they added.

Russian gas supply to Europe via the Nord Stream 1 pipeline

was seen restarting on time on Thursday after a scheduled

maintenance, easing concerns about gas supply to Europe.

“So it has been a risk positive night, but recession fears

certainly haven’t gone away and the rebound in equities over the

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past week could as much reflect a recovery from over-sold levels

and extreme levels of pessimism,” NAB analyst said in a note.

A Reuters report suggested that the ECB could hike rates by

50 basis points at their meeting on Thursday. The Bank of Japan

and Bank Indonesia, which also meet on Thursday, are expected to

stand pat on interest rates.

In commodities market, oil prices were weighed down by

global central banks’ efforts to tame inflation and ahead of

expected builds in U.S. crude inventories as product demand

weakens.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields rise by 7.6 basis

points for a fourth consecutive session to 7.492%

** The Bank of Japan is the only major global central bank

to keep an ultra-loose monetary policy

** China kept its benchmark lending rates for corporate and

household loans unchanged

Asia stock indexes and currencies at 0401 GMT

COUNTRY FX FX FX INDEX STOC STOCKS

RIC YTD KS YTD %

DAILY %

% DAIL

Y %

Japan +0.07 -16.6 2.40 -4.11

6

China -0.05 -5.80 0.67 -9.30

India +0.00 -7.01 1.05 -4.85

Indonesia -0.07 -4.90 1.74 4.13

Malaysia +0.02 -6.36 0.48 -8.42

Philippines -0.27 -9.45 0.38 -11.41

S.Korea +0.38 -9.14 0.95 -19.62

Singapore +0.01 -3.04 1.30 1.14

Taiwan +0.05 -7.35 1.05 -18.50

Thailand -0.23 -8.91 0.46 -7.07

(Reporting by Tejaswi Marthi in Bengaluru; Editing by

Jacqueline Wong)

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