Business

Asian stocks rebounded as oil hit a two-year high


Stocks jumped across Asia and the Pacific after a rebound on Wall Street and oil rose to a two-year high as investors were reassured by signs that the Federal Reserve will continue to support the economic recovery from the coronavirus pandemic.

In early trade in the region on Tuesday, Japan’s Topix rose 2.4 percent and Australia’s S&P/ASX 200 rose 1.2 percent. China’s CSI 300 Index of shares listed in Shanghai and Shenzhen rose 0.3 percent.

Track moves a Bounce for US stocks On Monday, the S&P 500 closed 1.4 percent higher. US stocks Dropped last week After the Federal Reserve shifted to a more hawkish tone, raising concerns that raising interest rates could derail the global economic recovery.

But market sentiment received a boost on Monday from more pessimistic comments from Federal Reserve officials, including President Jay Powell, who said in prepared remarks ahead of testimony to Congress on Tuesday that the central bank “will do everything in its power to support the economy as long as it takes to complete the recovery.” “.

John Williams, also president of the Federal Reserve Bank of New York He said on Monday The US economy was not yet ready for the central bank to start withdrawing its massive monetary support.

“The Fed’s new forecasts are not going to translate into much higher policy rates any time soon,” said Jean Boivin, president of the BlackRock Investment Institute.

We may see bouts of market volatility. . . But we call for continued investment and research into any disruption.”

S&P 500 futures rose 0.1 percent during Asian trading on Tuesday, while London’s FTSE 100 futures rose 0.2 percent.

Commodity prices, which were hit last week on concerns about the global economic outlook, also rose. Brent crude, the global benchmark for oil, rose 0.1 percent to $75 a barrel for the first time since April 2019.

Brent Ho above 50 percent This year, confirming strong demand ahead of next week’s OPEC+ meeting.

Bitcoin stabilizes after sharp decline in response to a Warning The People’s Bank of China said on Monday that government banks and payment platforms should “verify and identify” accounts that facilitate cryptocurrency trading and block all such transactions.

The cryptocurrency gained 0.2 percent in Asian trading to $32,635 but has remained down more than 7 percent this month.

Bond markets stabilized after yields, which move inversely with prices, rose on Monday as investors abandoned the safety of government debt and returned to equities. The 10-year US Treasury yield fell 0.02 percentage points to 1.474 percent.



Source link

Related Articles

Leave a Reply

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

Back to top button