Asian stock markets rose to their highest level in more than four months on Thursday, helped by optimism in the global banking sector and hopes of stabilization in the Chinese economy after solid trade data.
A man looks at an electronic board displaying the Nikkei average
outside a brokerage in Tokyo, Japan, March 2, 2016. REUTERS/Thomas Peter
TOKYO: Asian stock markets rose to their highest level in
more than four months on Thursday (Apr 14), helped by optimism in the
global banking sector and hopes of stabilization in the Chinese economy
after solid trade data.
MSCI's broadest index of Asia-Pacific shares outside Japan
rose 0.4 per cent while Japan's Nikkei gained 2.0 per cent extending a
two-day rally following a strong lead from other global equity markets.
The Hang Seng Index in Hong Kong added 1.30 per cent, or 274.21 points, to 21,432.92.And in Shanghai, the composite index rose 0.44 per cent, or 13.45 points, to 3,080.09 and the Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 0.52 per cent, or 10.22 points, to 1,972.65.
Overnight, US S&P 500 Index gained 1 per cent to a
four-month high after JPMorgan Chase's first quarter earnings fell less
than expected, helping to lift the S&P 500 financial sector 2.2 per
cent.
That came after bank shares in Europe did even better,
surging 6.3 per cent, as investors scooped up Italian banks,
re-evaluating a state-orchestrated plan to set up a 5 billion euro
(US$5.7 billion) fund to shore up weaker banks.
In Asia, China's exports in March returned to growth for the first
time in nine months, adding to further signs of stabilization in the
world's second-largest economy that cheered regional investors.
Moves higher across Asia, Europe and the Americas helped the MSCI All World Index rise to the positive territory on the year.
In the currency market, rising risk appetite led the dollar to turn the table against lower-yielding euro and yen.The euro slipped 1.0 per cent, its biggest fall in about 5 months, on Wednesday and last traded at US$1.1276, off Tuesday's six-month high of US$1.1465.
The dollar bounced back against the yen to 109.41 , extending the recovery from its 17-month low of 107.63 touched on Monday.
Even softer-than-expected U.S. producer prices and retail sales numbers last month dented the dollar only for a brief moment.
US retail sales unexpectedly fell in March as households cut
back on purchases of automobiles and other items, further evidence that
economic growth stumbled in the first quarter.
Commodity currencies were also brisk, with the Canadian
dollar hitting a nine-month high of CUS$1.2744 per U.S. dollar on
Wednesday before giving up some of its gains to trade at CUS$1.2810.
Elsewhere, the Singapore dollar weakened 0.6 per cent after the city state's central bank eased its policy, saying it will guide the Singapore dollar essentially flat and issued a downbeat assessment of its economy.
The Korean won eased 0.3 pe rcent after South Korea's ruling conservative party suffered an upset defeat in a parliamentary election in a stinging blow to President Park Geun-hye.Oil futures hit four-month highs in choppy trading on Wednesday before edging back as comments from Russia's energy minister added to doubts a producer meeting set for Sunday in Doha to discuss freezing output would yield a positive outcome
Prices fell after Reuters reported that Russian oil minister
Alexander Novak told a closed-door briefing that a deal on an oil
output freeze scheduled to be signed this month in Doha will be loosely
framed with few detailed commitments.
"The biggest focus for now is the Doha meeting. I suspect an
agreement will be difficult and we could see some setback," said Takeru
Ogihara, chief strategist at Mizuho Trust Bank.
Brent crude futures fell 0.5 percent in early Asian trade on
Thursday to US$43.97 per barrel after having scaled a high of US$44.94
on Wednesday.
- Reuters
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