Asian stocks rise on stimulus hopes

(RTTNews) – Asian stocks were broadly higher on Thursday after a rally in the tech sector helped Wall Street snap a three-day losing streak overnight.

Oil plunged after a two-day rally, while the dollar index eased and US Treasury yields stabilized as traders recalled aggressive bets on interest rate hikes from the Federal Reserve.

Market participants await the European Central Bank’s meeting later today amid concerns of more hawkish directions.

China’s Shanghai Composite Index climbed 0.7% after China’s cabinet announced upcoming cuts in banks’ required reserve ratios (RRRs) and interest rates to counter the impact of Covid-19 and spur consumption recovery and growth.

Hong Kong’s Hang Seng rose 0.4% even as Shanghai’s lockdown dragged on.

Japan’s Nikkei index rose 1.2%, a day after the yen broke above 126 yen to the dollar for the first time since 2002.

Shares in Seoul were little changed after the Bank of Korea unexpectedly raised its key rate to the highest since August 2019 to cool consumer prices fueled by the pandemic-era stimulus and exacerbated by the invasion of Ukraine by Russia.

Australia’s benchmark S&P/ASX 200 index rose 0.4% as commodity stocks climbed. The country’s unemployment rate remained at a 13-year low in March as job growth slowed after months of strong gains, official data showed earlier in the day.

New Zealand stocks edged higher, a day after the Reserve Bank of New Zealand raised interest rates by 50 basis points – its most aggressive hike in more than two decades.

The Bank of Canada also raised interest rates by half a percentage point – its biggest move in more than two decades to combat runaway inflation.

US stocks rose overnight as Treasury yields pulled back on the curve and investors digested the latest earnings reports from JPMorgan Chase, Delta Air Lines and Bed, Bath & Beyond.

Investors shrugged off data showing monthly U.S. producer prices rose the most in more than 12 years in March.

The Dow Jones climbed 1%, the S&P 500 added 1.1% to end a three-day losing streak and the tech-heavy Nasdaq Composite jumped 2%.

European stocks ended mixed on Wednesday as investors weighed the risks associated with soaring inflation, the ongoing war in Ukraine and an extended Covid-19 lockdown since late March in Shanghai.

The pan-European Stoxx 600 index ended flat with a positive bias. Germany’s DAX fell 0.3%, while France’s CAC 40 index and the UK’s FTSE 100 both ended slightly higher.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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