Asian Shares Rise as U.S. Stocks Rally for Second Straight Day
HONG KONG (AP) — Asian shares rose on Wednesday, following a 2% gain in Japan’s Nikkei 225 after U.S. stocks rallied for a second consecutive day on Tuesday. This positive momentum helped offset the challenges faced in April.
In Japan, the benchmark Nikkei 225 surged 2.1% in morning trading to 38,337.23, with the yen remaining at 34-year lows. Australia’s S&P/ASX 200 index also saw a 0.3% increase to 7,705.70 after the release of a fifth consecutive quarter of decelerating inflation.
South Korea’s Kospi added 1.9% to 2,672.87, driven by a 3.8% gain in Samsung Electronics. The Hang Seng in Hong Kong and the Hang Seng Tech Index both saw gains, with the Shanghai Composite index also rising.
Taiwan’s Taiex gained 2.3%, reflecting the positive trend in the region. In the U.S., the S&P 500 climbed 1.2% to 5,070.55, with the Dow Jones Industrial Average and the Nasdaq composite also posting gains.
A weaker-than-expected report on U.S. business activity provided support to the market, easing concerns about a severe recession while managing inflation pressures. The positive preliminary report from S&P Global further boosted market sentiment, leading to gains in stocks.
Earnings reports played a significant role in driving trading activity, with companies like GE Aerospace, Kimberly-Clark, General Motors, and Danaher exceeding analysts’ expectations. However, Nucor experienced a decline after falling short of forecasts.
The Federal Reserve’s stance on interest rates also influenced market dynamics, with officials indicating a need to maintain high rates to manage inflation. The report suggesting a slowdown in overall business activity in the U.S. was well-received, potentially paving the way for interest rate cuts.
In oil trading, U.S. benchmark crude and Brent crude both saw slight declines. The U.S. dollar remained stable against the Japanese yen, while the euro saw a modest increase.
Overall, the positive performance of Asian shares following the U.S. stock rally indicates a potential shift in market sentiment, driven by earnings reports and economic indicators. Investors will be closely monitoring further developments to gauge the sustainability of this upward trend.
