Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Asian Stocks Rise Tracking Wall Street Rebound, But Outlook Uncertain

Stock Markets Sep 29, 2022 15:44
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
JP225
-1.78%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HK50
-0.80%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NSEI
-0.61%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
KS11
-1.45%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CSI300
-0.64%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick 

Investing.com-- Asian stock markets rose on Thursday, tracking an overnight recovery on Wall Street as a dollar rally paused, but concerns over rising interest rates and a looming recession kept the outlook dim.

Stocks in Japan, China and Southeast Asia rebounded sharply from steep losses this week, with sentiment also improving after the Bank of England intervened in bond markets to prevent a financial meltdown in the country. 

Technology-heavy indexes including Hong Kong’s Hang Seng and South Korea’s KOSPI were among the best performers for the day, rising more than 1% each. 

Wall Street indexes were also supported by tech majors during the overnight session, as the dollar and Treasury yields retreated from recent peaks. But the tech sector remains the hardest hit by rising interest rates this year, as markets discounted future earnings against a strengthening dollar. 

Traders remained uncertain over Thursday’s gains, given that the factors behind a recent stock market rout were still in play. 

Central banks across the globe are expected to keep hiking interest rates this year as they contend with a major jump in inflation. Fears of a potential recession- stemming from high inflation and interest rates- also kept investors on edge. 

Rising U.S. interest rates have weighed heavily on Asian markets this year, with the pressure expected to persist in the coming months. A slew of Federal Reserve officials also reinforced expectations this week that the central bank will keep tightening policy aggressively.

But the Fed isn't alone in raising rates. The European Central Bank recently hiked rates and signaled more raises as it moves to normalize monetary policy. The Bank of England is also expected to raise rates sharply in order to support the pound, which sank to record lows this week. 

In Asia, India’s bluechip Nifty 50 index rose 0.6% ahead of a widely-expected interest rate hike by the central bank on Friday. The Reserve Bank is also contending with rising inflation and a sinking rupee

China’s bluechip Shanghai Shenzhen CSI 300 index rose 0.5%, cheered by more stimulus measures from the government. The country distributed about 300 billion yuan ($42 billion) allocated for infrastructure projects through three state policy banks, as it looks to shore up economic growth by undertaking large public infrastructure projects.

Focus is also on Chinese manufacturing data due on Friday, which is expected to show a continued decline in activity. 

Asian Stocks Rise Tracking Wall Street Rebound, But Outlook Uncertain
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email