Asian shares rose on Tuesday, shrugging off worries about an increase in regional coronavirus infections and a subdued session on Wall Street, while inflation jitters helped push gold prices to three-month highs.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 1.06% after a mixed session on Monday, still not recouping losses of the last few weeks amid new clusters of COVID-19 cases that are prompting some economies to impose fresh anti-virus measures.
Over in Hong Kong, the Hang Seng index rose 1.3%. Mainland Chinese stocks edged higher, with the Shanghai composite rising 0.21% while the Shenzhen component gained 0.28%.
South Korea’s Kospi edged 1.1% higher.
The S&P/ASX 200 in Australia rose 0.73%. Minutes from the Reserve Bank of Australia’s May monetary policy meeting released Tuesday showed the central bank’s board viewed the conditions for a rate rise as unlikely to be met “until 2024 at the earliest.”
· Japanese shares jump as investors shrug off GDP data to buy battered stocks
Japanese shares jumped on Tuesday as investors shrugged off data showing the economy slipped back into contraction, and picked up stocks whose valuations took a beating in recent sell-offs.
The Nikkei share average advanced 2.09% to close at 28,406.84, recovering from a four-month low hit last week, while the broader Topix added 1.54% to 1,907.74.
Japan’s economy shrank more than expected in the first quarter as a slow vaccine rollout and new COVID-19 infections hit spending on items such as dining out and clothes.
Recruit Holdings, the seventh-biggest Japanese company by market capitalisation, jumped 7.19% after the staffing agency gave a strong outlook for the current financial year.
Mitsubishi UFJ Financial Group rose 2.3% after the country’s top banking group announced a dividend hike and a stronger-than-expected profit forecast for the current year.
· Taiwan shares bounce 5%, weaker dollar lifts Asian FX
Taiwan stocks closed 5.2% higher, while markets in
neighbouring Japan, which is dealing with a resurgence
in COVID-19 cases and slow vaccination drive, jumped 2.1%. South Korea and Singapore climbed more than 1% each.
While investors shrugged off fears over the potential impact of renewed coronavirus restrictions,while a weaker U.S. dollar lent support to Asia's emerging currencies.
· European stocks climb as global sentiment turns positive
European stocks advanced on Tuesday as global markets look to break out from the gloomy sentiment seen at the start of the trading week.
The pan-European Stoxx 600 gained 0.7% in early trade, with basic resources adding 1.6% to lead gains as all sectors except telecoms entered positive territory.
A key focus in Europe on Tuesday will be an updated estimate of euro zone first-quarter gross domestic product (GDP). Flash first-quarter employment figures are also due for the region, as well as U.K. unemployment data for March.
· FTSE 100 rises on commodity stocks, jobs data boost; Oxford Biomedica jumps
London’s FTSE 100 climbed on Tuesday, on gains in heavyweight mining and energy stocks, while a better-than expected jobs data strengthened views of a stronger economic recovery from pandemic-driven crash last year.
The blue-chip index rose 0.8%, with miners jumping 2% as they tracked higher copper and zinc prices.
Oil majors BP and Royal Dutch Shell, and banking stocks gained more than 1% each.
· Dow futures rise more than 100 points after Wall Street begins week with modest losses
Futures contracts tied to the major U.S. stock indexes rose in early morning trading on Tuesday after Wall Street kicked off the week with modest losses.
Dow futures jumped 145 points, while contracts tied to the S&P 500 and Nasdaq 100 futures both traded in positive territory.
The Fed’s minutes from its last meeting, which will be released Wednesday, could offer some clues on policymakers’ thinking on inflation.
Reference: CNBC, Reuters
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