US Stocks Rise, Asian Stocks Follow Suit

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US Stocks Rise, Asian Stocks Follow Suit
US Stocks Rise, Asian Stocks Follow Suit

The stock market in Asia was up early on Wednesday, following suit with the stock market gains in the U.S. U.S. stocks witnessed a surge on Tuesday ahead of the good quarterly earnings, which helped stir trader’s expectations for more growth.

The U.S. stock market closed on a positive note on Tuesday, with the Dow Jones Industrial Average, the S&P 500 index, and the Nasdaq Composite index rallying up by 1.05%, 1.04%, and 1.11%, in that order. A fake tweet on the Associated Press’s Twitter account stating that U.S. President Barack Obama was injured in an explosion at the White House, did manage to dwindle the strong stock market a bit, but it managed to bounce back after realizing that the reports were bogus.

The major boost to the Asian stocks came from Japanese exporters, which pushed the Nikkei 225 up by 1.30%. This was considered the best closing mark of the Nikkei in the last five years. CSPI of Japan however saw a decline of -0.2% last month, from the 0% level it held in the month of March. Financial experts have anticipated a drop of -0.4% last month in Japan’s CSPI.

Investors looking forward to trade in the yen should keep an eye on the BoJ meeting slated for Friday. The newly elected Governor of the BoJ Haruhiko Kuroda had revealed a set of stimulus measures earlier this month to engineer inflation in Japan, which in turn weakened the currency to boost the economy.

Hang Seng index of Hong Kong saw a surge of 0.95%, even as the Shanghai Composite index climbed 0.37%, ahead of the release of purchasing managers index for China by HSBC Holdings/Markit Economics that came to be at 50.5 for this month against the expected 51.4 reading.

Coming to the Australian stock market, S&P/ASX 200 Index saw a boost of 0.9%, as the Australian Bureau of Statistics released CPI data showing a growth of 0.4% in the first quarter, which was bit lower than the expected 0.6% level. New Zealand’s NZSE 50 also climbed up by 0.43%, ahead of the data released by the Reserve Bank of New Zealand that maintained the interest rate at 2.5%.