Asian Stocks Rally Following Positive Data from the U.S.

Asian Stocks Rally Following Positive Data from the U.S.
Asian Stocks Rally Following Positive Data from the U.S.

The Asian stocks market bounced back Friday from the abrupt losses incurred on Thursday. The upward trend in the Asian stocks can be attributed to the positive data released by the U.S. that brought in a surge in U.S. stocks.

Nikkei 225 of Japan rallied by 3.04% to cover up half of the losses posted by the index on Thursday. The rally came despite the USD/JPY pair trading high, ahead of the distress of traders that the Bank of Japan did not put in enough efforts to bolster the country’s economic condition.

Earlier this week, the Bank of Japan revealed that it would not make any alterations in the monetary policy following several stimulus measures taken for many months. This gave way to concerns whether the Federal Reserve will also cut back on stimulus measures or not. The Federal Reserve Bank had rolled out several stimulus measures to strengthen the stock prices like monthly USD85 billion bond-buying program, and the recent concerns about discontinuing it has roiled markets for quite some time.

Hang Seng index in Hong Kong witnessed a rise of 0.99%, but failed to come out of the bear market territory as it dropped 21% from its highest level in 2013. Meanwhile the Shanghai Composite climbed by 0.21%.

S&P/ASX 200 Index of Australia rallied by 1.7%, owing to the positive of financial shares, with the National Australia Bank and Westpac Banking registering a hike of 3.3% and 2%, respectively.

NZSE 50 of New Zealand went up by 0.50%, ahead of the decision of the Reserve Bank of New Zealand to maintain the rates at 2.5%.

Straits Index in Singapore and Kospi Index in South Korea also posted a jump of 0.88% and 0.21%, apiece. On the contrary, S&P 500 futures showed a downward trend as it dropped by 0.04%, even as the U.S. index rallied by 1.48%.

On Thursday, the U.S. stocks market closed on a positive note. The Dow Jones Industrial Average saw a surge of 1.21% by the end of the day. The S&P 500 index and the Nasdaq Composite index also followed suit as they finished up by 1.48% and 1.32%, in that order.