The impact leading from the U.S. economic circumstances to other economies should not be underestimated, as Asian markets also rely on the U.S. economy to a notable extent. The Asian stocks gained on Monday and Tuesday as the markets are heading to a new five-months high level amidst the news from the Senate that the U.S. government would be reopen and would possibly get a flexibility in its debt ceiling level.
Nikkei along with the Australia’s S&P/ASX 200 index soared by 1 percent where the central bank of the country emphasized on the fact that it does retain the option of dropping down the interest rate further which could possibly stimulate the growth within the economy and bring flexibility in the business environment, while favoring exporters substantially.
One of the largest building materials maker company – James Hardie industries SE – jumped by 1.8% in the stock market in Sydney as it gets a major chunk of its sales (around 70%) from the United States alone, as both the government shutdown problem is getting closer to get solved and the Australian interest rate cut speculation is in the air.
On the other hand, Mazda Motor Corp soared by 3% in Tokyo as the ratings for the carmaker company were raised by BNP Paribas, hence clearing the way for the investors to go long on this stable and potential-profitable stock.
Even South Korea witnessed some bulls taking its stock market where the number one tiremaker of the country – Hankook Tire Co. – rallied 1.9% after a huge announcement from the company’s management came out that they are planning on building their new manufacturing facility in the United States as well. The investors are finding this decision as a very healthy sign for the company’s future prospects and they might be jumping in to go long on the company’s stocks for the long-term.
To contact the reporter of this story: Jonathan Millet at email@example.com