Asian Shares Rise on Optimism on Economic Data, Earnings
Asian shares mostly rose Thursday as investors welcomed encouraging economic data and quarterly earnings reports from big companies.
Benchmarks rose across the region, including Japan, China, Australia and South Korea. The gains followed a strong rally on Wall Street.
Jitters eased over the visit of U.S. House Speaker Nancy Pelosi to Taiwan after she left for South Korea and then later Japan, firm U.S. allies for decades. But analysts said some geopolitical risks remain, with China conducting military exercises near the self-ruled island that it claims as its own territory.
“Despite the easing in immediate concerns, investors will be looking out for any potential escalation in U.S.-China tensions, with any economic sanctions from China likely to negatively affect risk sentiment and positioning in Asian markets,” said Anderson Alves of ActivTrades.
Alves said investors are also watching U.S. nonfarm payrolls, due Friday, for indications on hiring, and how that might affect interest rate policy. But overall Pelosi's trip so far has had little impact on markets.
Japan's benchmark Nikkei 225 added 0.5% in morning trading to 27,892.68. Australia's S&P/ASX 200 gained 0.2% to 6,990.30. South Korea's Kospi added 0.4% to 2,471.26. Hong Kong's Hang Seng rose 1.7% to 20,105.06, while the Shanghai Composite edged up 0.4% to 3,175.17.
On Wall Street, the S&P 500 rose to 4,155.17, an almost 2-month high. The Nasdaq gained 2.6% to 12,668.16. Both indexes more than recouped losses earlier in the week. The Dow Jones Industrial Average rose 1.3% to 32,812.50. The Russell 2000 index of smaller companies ended 1.4% higher, at 1,908.93. Read More...
