Wall Street lead pushes Asian markets higher

<p>Strong leads from Wall Street overnight pushed Asian shares generally higher today. US investors are optimistic of positive corporate earnings, and pushed the US markets […]</p>

Strong leads from Wall Street overnight pushed Asian shares generally higher today. US investors are optimistic of positive corporate earnings, and pushed the US markets higher which trickled to Asia today.

The Hang Seng and Nikkei indices were both up today.

In Hong Kong, stocks climbed sending the benchmark Index to its first advance in three weeks after corporate earnings exceeded analyst estimates and a US report showed a decline in unemployment claims. 

Bank of China Ltd, the nation’s third largest lender by market value rose 3.1% after posting a 29% increase in full year net income. China Construction Bank Corp gained 1.5% ahead of the release of its full year results today. 

In Japan, Arisawa Manufacturing Co, the processor of industrial materials widened its full year net loss forecast to 2.16 billion Yen – the stock increased 2.4%. Askul Corp, a distributor of office equipment said nine month income plunged 55% sending the stock lower 1.5%.

In Australia, the local share market opened strongly and stayed in positive territory to close higher this week. 

The positive lead from the US overnight gave our local stocks some prodding today.  We saw strength across the board (in all sectors), but it was the Mining and Energy sectors that led the push higher today.

We have a combination of a few positive factors at play. The US market is positive and optimistic on corporate earnings and the Japanese situation seems not to be a big worry among investors at this stage.

It is understandable to see some strong bounce on the market given the big drops that we’ve seen over the past two weeks. We are seeing bargain hunters getting active again as well as those who have remained bullish despite the hiccups over the recent weeks.


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.