· Stocks rise as global economic picture improves
Asian shares and U.S. stock futures rose on Wednesday as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programmes accelerated.
- MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.58%. Australian stocks gained 0.92%. Shares in China fell 0.03%.
- Hang Seng Index retreats as regulatory risks hurt Alibaba and WuXi Biologics plans new stock placement at discount
Hong Kong stocks declined, snapping a powerful two-day rally, as concerns about Alibaba Group Holding and WuXi Biologics weighed on the benchmark stock index.
The Hang Seng Index lost 0.5 per cent to 29,110.75 at the local noon break, up 2.9 per cent so far this week. The Shanghai Composite Index gained 0.2 per cent to 3,540.65.
- Mainland Chinese stocks edged higher by the afternoon, with the Shanghai composite up 0.2% while the Shenzhen component gained 0.55%. Hong Kong’s Hang Seng index bucked the trends and fell 0.47%.
- E-mini futures for the S&P 500 rose 0.43%.
- Euro Stoxx 50 futures rose 0.53%, German DAX futures gained 0.41%, and FTSE futures rose 0.38%, pointing to a bright start to European trading.
The U.S. Treasury yield curve continued to steepen in Asian trading, reflecting expectations for more fiscal spending and growing economic optimism.
The roll-out of vaccines in many countries is gathering pace, earnings season in the United States and Japan has so far been favourable, and oil prices are at their highest in a year, which are all positive signs for the global economy.
Japan’s Nikkei 225 closed 1% higher at 28,646.50 while the Topix index ended its trading day 1.3% higher at 1,871.09. South Korea’s Kospi closed 1.06% higher at 3,129.68.
China shares end lower as losses in tech stocks offset auto gains
China shares ended lower on Wednesday, as profit-taking in tech stocks with high valuations outweighed gains in automakers on expectations of strong sales growth this year.
At the close, the Shanghai Composite index fell 0.46% to 3,517.31 and the blue-chip CSI300 index shed 0.29%.
Chongqing Changan Automobile Co Ltd reported a growth of 87.2% in its January vehicle sales from a year ago, while the country’s industry association forecast a 4% rise in total annual vehicle sales for 2021 at 26.3 million units.
· European shares rise on earnings, recovery hopes
European shares rose for the third session on Wednesday as focus remained on a busy day of earnings, with positive sentiment spilling over from Asian markets on hopes of a faster global economic recovery.
Germany’s DAX index gained 0.8%, while the STOXX 600 index rose 0.9%.
Reference: CNBC, Reuters
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