🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

GLOBAL MARKETS-Asia shares ride Wall St bounce, China muted

Published 17/10/2018, 01:32 pm
© Reuters.  GLOBAL MARKETS-Asia shares ride Wall St bounce, China muted
EUR/USD
-
USD/JPY
-
XAU/USD
-
US500
-
DJI
-
JP225
-
GS
-
GOOGL
-
AMZN
-
UNH
-
GC
-
LCO
-
CL
-
NFLX
-
IXIC
-
META
-
KS11
-
GOOG
-
MIAPJ0000PUS
-
CSI300
-
DXY
-
MIEM00000CUS
-

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* Nikkei up more than 1 pct, but China stocks lag

* Netflix surges on strong results, lifts FANG sector

* Dollar mixed as risk sentiment favours emerging markets

By Wayne Cole

SYDNEY, Oct 17 (Reuters) - Asian equities got some welcome relief on Wednesday after upbeat U.S. earnings reports drove a rebound on Wall Street and helped restore a little faith in emerging market stocks and currencies.

Japan's Nikkei .N225 galloped out of the gates with a rise of 1.7 percent, but still has a long way to go to recoup the past week's losses.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.7 percent and South Korea .KS11 1.2 percent. Chinese blue chips, however, lagged with a gain of only 0.2 percent .CSI300 .

U.S. stocks had jumped more than 2 percent on Tuesday in reaction to upbeat earnings reports from major companies including UnitedHealth (NYSE:UNH) and Goldman Sachs (NYSE:GS).

"Analysts are looking at this reporting season in particular and the general data over the next couple of months for signs that the receding tailwinds of fiscal stimulus and the headwinds of tariffs are going to hit the U.S. market simultaneously," said Rakuten Securities Australia COO, Nick Twidale.

"On first viewing this doesn't appear to be happening."

On Wall Street, the three major indexes tallied their biggest one-day percentage gains since March. The Dow .DJI jumped 2.17 percent, while the S&P 500 .SPX climbed 2.15 percent and the Nasdaq .IXIC 2.89 percent. .N

Netflix Inc NFLX.O shot 12 percent higher after the close as its results far outstripped market expectations with 7 million streaming customers added. blockbuster outcome sent shares of Alphabet Inc GOOGL.O , Facebook Inc FB.O and Amazon.com Inc AMZN.O up about 1 percent in extended trade.

The four make up the so-called FANG group of high-growth companies that in recent months has lost some of its momentum following market-leading gains in recent years.

The U.S. economic news was also robust, notably a sharp rise in job openings to a fresh all-time high. BIGGEST THREAT

All this cheer favoured beaten-down currencies in emerging markets while taking some steam out of the safe-haven yen. The MSCI Emerging Market Currency Index rose for a third straight session .MIEM00000CUS .

The latest survey of global fund managers by BofA Merrill Lynch found they saw emerging market currencies as the most undervalued ever against the U.S. dollar.

The dollar itself was up on the yen at 112.35 JPY= but flat on the euro at $1.1570 EUR= . Against a basket of currencies, the dollar idled at 95.123 .DXY having touched a two-week trough overnight.

Not helping the dollar was fresh criticism of the Federal Reserve from U.S. President Donald Trump, who told Fox Business Network: "My biggest threat is the Fed."

Trump has recently castigated the central bank for raising interest rates.

"While such name calling shouldn't mean anything in terms of what the Fed actually does, it is a factor which somewhat undermines sentiment towards the dollar," said Ray Attrill, head of FX strategy at NAB.

"It's a contributory factor, albeit minor, to recent poor performance of the U.S. dollar."

Minutes of the last Fed meeting are due out later Wednesday are expected to show policy makers remain committed to further gradual tightening. commodity markets, gold held near recent 11-week highs at $1,223.18 XAU= .

Oil prices edged up as industry data showed a surprise decline in U.S. crude inventories. There was also a risk that crude supply from the Middle East could be disrupted by looming U.S. sanctions on Iran and growing tensions with top exporter Saudi Arabia. O/R

Saudi Arabia has been under pressure since prominent Saudi journalist Jamal Khashoggi disappeared after visiting the Saudi consulate in Istanbul. crude rose 8 cents to $72.00 CLc1 , while Brent crude LCOc1 added 2 cents to $81.43 a barrel.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.