· Asian shares rose on Tuesday as hopes for stimulus in major economies tempered anxiety about a global recession, boosting riskier assets and drawing money from safe-havens such as bonds and gold.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.53%, while Japan’s Nikkei rose 0.54%. Wall Street rallied overnight, with the S&P 500 gaining 1.21%. [.N]
For now, however, investors were cheered by signs policymakers were willing to do more to support their economies in the grip of international trade frictions, led by the bruising Sino-U.S. tariff tussle.
The immediate focus shifts to the minutes of the U.S. Federal Reserve’s last meeting due on Wednesday. Traders are also keenly waiting on the Fed’s Jackson Hole seminar and a Group of Seven summit this weekend for clues on what additional steps policymakers will take to bolster growth.
· Japan’s Nikkei rose for a third straight day on Tuesday as investors tiptoed back into equities amid signs of a slight easing of trade tensions between the United States and China.
Hopes for fresh stimulus moves by major economies also boosted riskier assets.
On Monday, Washington extended a reprieve that permits China’s Huawei Technologies to buy components from U.S. companies by 90 days, to supply existing customers.
The Nikkei share average rose 0.6% to 20,677.22 points, while the broader Topix added 0.8% to 1,506.77.
· European stocks were mixed on Tuesday morning as hopes for monetary policy stimulus temper investor anxiety over an impending recession.
The pan-European Stoxx 600 edged just below the flatline in early trade, healthcare stocks rising 0.4% while basic resources led losses with a 1.3% fall.
Reference: CNBC, Reuters
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