Asian shares mostly rise after Wall Street rally


Stocks mainly in Asia were higher on Tuesday, tracking the latest rally on Wall Street. Oil prices and US oil futures rose and the dollar traded near 149 Japanese yen.

The release of China’s most recent economic growth figures was postponed on Monday, removing a factor that was expected to boost trading. No specific reason was given, but the GDP report could contradict the confident tone of the Communist Party congress held in Beijing, which showed the economy grew at least 3% in the past year. most recent quarter, only half of the official 5.5% target. .

There was little immediate news from the Beijing meeting, where the party is expected to announce its top leadership role for the next five years the day after the congress closes.

Some analysts speculated that the delay was due to signs of further weakness in the economy. ING Economics said in a report that while the data is unlikely to “paint a particularly positive picture of the Chinese economy” when they are finally released, “the delay shows that the government believes that the 20th Party Congress is the most important thing happening in China right now and wanted to avoid other information flows that could create mixed messages.”

Hong Kong’s Hang Seng index rose 1.7% to 16,888.79, while the Shanghai Composite index fell 0.1% to 3,080.96.

Tokyo’s Nikkei 225 rose 1.4% to 27,156.14, and Seoul’s Kospi gained 1.4% to 2,249.95. In Australia, the S&P/ASX 200 rose 1.7% to 6,779.20. India’s Sensex rose 1%.

The dollar traded at 148.96 Japanese yen, down from 148.98 yen. Senior Japanese officials have indicated they may intervene in the market to try to stem the volatility and support the yen, which has weakened sharply against the dollar this year.

The euro rose to 98.60 cents from 98.41 cents.

On Monday, the S&P 500 rose 2.6% to 3,677.95. The Dow rose 1.9% to 30,185.82, while the Nasdaq rose 3.4% to 10,675.80.

Traders also place bids on shares of small companies. The Russell 2000 index rose 3.2% to 1,735.75.

Early Tuesday, S&P 500 futures rose 1.5% while the Dow industrials gained 1.2%.

Nearly all stocks in the benchmark S&P 500 index rose, with technology and media companies among the biggest gainers.

Bond yields fell back from multi-year highs and eased some of the pressure on equities. The yield on 10-year Treasuries, which affects mortgage rates, was held steady at 3.99%. Yields on 2-year Treasuries, which tend to track expectations for future Federal Reserve action, fell to 4.46% from 4.50% late Friday.

The UK’s government bonds rose on news that the country’s new Chief Financial Officer had abandoned nearly all of a series of unreimbursed tax cuts that had roiled markets.

Wall Street indexes are still down sharply from their levels earlier this year. The S&P 500 and Russell fell more than 22%, while the Nasdaq fell more than 31%. The Dow fell nearly 17%.

Investors fear that inflation is raising recession risks as the Federal Reserve and other central banks raise interest rates to cool rising prices.

The latest round of corporate financial results could give investors a clearer picture of how companies and consumers are handling inflation.

On Monday, Bank of America CEO Brian Moynihan told analysts in a conference call after the release of the company’s latest quarterly results that inflation was high and worries about recession Recession has not slowed customer spending.

Several major airlines, which could experience some turmoil in their finances if inflation takes a toll on consumer travel spending, will report earnings this week. United Airlines releases its results on Tuesday, followed by American Airlines on Thursday.

Other big names reporting earnings this week include Johnson & Johnson, Netflix, Union Pacific and American Express.

In energy trading, benchmark US crude rose 44 cents to $85.90 a barrel in electronic trading on the New York Mercantile Exchange. It lost 15 cents to $85.46 a barrel on Monday.

Brent crude, the basis for international oil pricing, rose 30 cents to $91.92 a barrel.


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