© Reuters. FILE PHOTO: A man looks at stock market monitors in Taipei January 22, 2008. REUTERS/Nicky Loh
By Alun John
HONG KONG (Reuters) – Asian shares advanced on Tuesday, supported by a tech-driven Wall Street rally, and a rebound in Chinese markets a day after weak data heightened investor concerns about the world’s second-largest economy.
The dollar was under pressure as weak U.S. factory data tempered expectations about any near-term interest rate increases.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.76% on Tuesday. It is up about 5% since its 12-month low hit on Oct. 5, largely in line with a similar rally in world shares following a strong opening to the U.S. earnings season.
However, the Asian benchmark is still well off its level in late July, when a series of regulatory changes in China roiled markets. Japan’s Nikkei gained 0.56%.
“Asian markets have been generally following Wall Street and continuing the rebound – except worries about the Chinese economy’s growth are hurting that market’s performance,” said Edison Pun, Senior Market Analyst at Saxo Markets.
Chinese blue chips reversed early losses to rise 0.62% on Tuesday, a day they fell 1.1% when China reported gross domestic product growth slowed in the third quarter.
There were also gains in Hong Kong up 1.21% Australia, up 0.2%, and South Korea, 0.63% higher.
U.S. stock futures, the S&P 500 e-minis, gained 0.08%.
In currency markets, the dollar languished near the bottom of its recent range against major peers on Tuesday, knocked back by weak U.S. factory data overnight and on market wagers of faster normalisation of monetary policy in other countries.
Westpac analysts said “any slippage should prove modest” with U.S. Federal Reserve officials continuing to signal a strong preference for moving ahead with a November stimulus tapering announcement.
The dollar index slipped 0.13% and was last at 93.83 near its lowest level this month, losing ground on sterling and the euro, though holding its position against the yen.
U.S. Treasuries took a breather in early Asia. Overnight, five-year yields rose to their highest levels since early 2020 as traders positioned for expected central bank rate hikes.
Oil prices dipped from multi-year highs touched on Monday, also due to the fall in factory data, tempering expectations of demand, but high prices remain a concern for energy importing countries. [O/R]
Gold gained slightly with the spot price rising 0.2% to $1,767.9 an ounce, though the metal remained well within its recent range.
Asian shares track Wall Street higher, China rebounds
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.