Asian stocks soar on Wall Street lead – China data

<p>Investors also welcomed a survey showing that China’s service industries strengthened last month.</p>

Asian stocks rose sharply today (November 4th), led by Wall Street, after a rise in oil prices.

The Dow Jones Industrial Average closed 0.5 per cent up, the S&P 500 gained 0.3 per cent and the tech-heavy Nasdaq Composite rose 0.4 per cent.

"Part of [the rise in energy stocks] was due to news of possible supply disruption in Brazil and Libya, pushing the price of Brent crude higher and in general, there's a tight correlation between the movements in Brent and energy stocks. I see a favorable backdrop for investing in energy: cheap valuations, low expectations and i think oil prices could move higher from here so that's a good formula for success," Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds, told CNBC.

Sentiment was also boosted by the release of a survey showing that China's service industries strengthened last month. The Caixin/Markit purchasing managers' index for October rose to 52 from a 14-month low of 50.5 in September

Meanwhile, investors welcomed strong results from Japan Post, with shares jumping about 20 per cent after the company said it raised 1.44 trillion yen (£7.7 billion) in the world's biggest initial public offering of stock this year.

China's Shanghai Composite Index jumped 4.3 per cent to 3,459.64 and Hong Kong's Hang Seng gained 2.2 per cent to 23,053.57. Japan's Nikkei 225 was up 1.3 per cent to 18,926.01 and South Korea's Kospi rose 0.2 per cent to 2,052.77. Australia's S&P/ASX 200 edged up 0.1 per cent to 5,242.30.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.