Asian Stocks Catch a Lift From Wall Street & Europe
Its green on the screen for Asian markets after the upbeat mood overnight in US and Europe; Nikkei rallies almost 5%
Some Respite, Finally!
- The mood is positive across Asia after overnight rally on Wall Street & in Europe
- Japan’s Nikkei up 4.7% in morning trade, on track for its biggest one-day rise since October 2014
- Major Wall Street indices logged gains of more than 2%
- European stocks rally after Germany’s imports & exports hit record highs in July
Asian markets caught a tailwind on Wednesday after upbeat German economic data powered gains in the US and Europe, while the safe-haven yen skidded as investors’ mood turned positive.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2% in early trade, after major Wall Street indices logged gains of more than 2%.
Japan’s Nikkei soared 4.7% in morning trade, on track for its biggest one-day rise since October 2014. In the previous session, it lost 2.4% and wiped out its year-to-date gain.
European stocks also had a strong session on news Germany’s imports and exports hit record highs in value terms in July.
Chinese shares also gained late on Tuesday after digesting a bigger-than-expected drop in imports. The trade data raised fears that China’s slowdown could be sharper than many had expected, which in turn raised hopes that Beijing would muster more easing steps to prevent a hard landing.
It’s a good news day. Much relief will be felt from a number of retail investors who have been confused as to the very crux of the sell-off in global equity markets.
-Chris Weston, Chief Market Strategist, IG
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