Asian Stocks Rally after Better Trading by European Stocks

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Asian Stocks Rally after Better Trading by European Stocks
Asian Stocks Rally after Better Trading by European Stocks

Asian Stocks Rally after Better Trading by European Stocks

It is a rally time for Asian stock markets as most of the stock markets in the region are trading higher today. A better performance by the Dow Jones industrial average that hit another all-time high yesterday, is contributing towards positive trend in Asian market.

Whereas Tokyo’s Nikkei rose 1.7 percent to 14,510.56, South Korea’s Kospi added was up by 1.1 percent to reach 1,998.41.

On the one hand, China’s Shanghai Composite grew by 0.3 percent to reach at 2,116.22 points; the PSE Composite in Manila climbed 0.5 percent to 6,294.55. The Philippines which is grappling with the aftermath of Typhoon Haiyan has been down for the last week and continued the same trend on Monday; however, the reversal is heartening.

There is marginal increase in the stocks of Thailand, Taiwan and New Zealand. However, Hong Kong’s Hang Seng shed 0.7 percent to 22,914.37. Similarly, Australia’s S&P/ASX 200 edged down 0.2 percent to 5,389.6. According to investors and traders, a lot of better performance is due to better U.S. economic figures from the data release on Friday wherein the country seems to have obtained better employment figures.

Better Employment Data in the U.S. Helping the Global market

Though investors are of the opinion that thanks to the better employment data the Federal Reserve will reduce monetary stimulus, there is no hurry among them; rather, it has buoyed stocks. The latest data showed that the U.S. added 204,000 jobs in the month of October whereas market expectations were for 125,000 jobs. Better than expected market in the U.S. has led to a better performance of the Dow, which went up by 0.1 percent to a new high of 15,783.10.

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On the other hand, like Dow, the Standard & Poor’s 500 too gained 0.1 percent to reach up to 1,771.89 points which according to some observers is a record breaking performance. In fact, the Standard & Poor reached close to its own record which it reached on Oct. 29. Following the trend, even the NASDAQ composite rose less than 0.1 percent to 3,919.79.

European Stocks Changed Little in Yesterday’s trading

There was little change in European stocks as equities and bonds were doing better amidst predictions that the Eurozone economy would not be doing what it was expected from it the next quarter. Investors were worried about the European Central Bank’s decision wherein it unexpectedly lowered its key interest rate. The Stoxx Europe 600 Index declined by 0.2 percent to close at 322.89 at 8:09 a.m. in London.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com