Asian shares rise after 'relief rally' on Wall Street

Asian shares rise after 'relief rally' on Wall Street

Asian shares are higher, encouraged by a rally in U.S. shares after some weak economic data raised hopes that the Federal Reserve might ease away from aggressive interest rate hikes

A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Oct. 4, 2022

A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Tuesday, Oct. 4, 2022. Asian shares rose Tuesday, encouraged by a rally in U.S. shares after some weak economic data raised hopes that the Federal Reserve might ease away from aggressive interest rate hikes. (AP Photo/Lee Jin-man) The Associated Press

TOKYO — Asian shares rose Tuesday, encouraged by a rally in U.S. shares after some weak economic data raised hopes that the Federal Reserve might ease away from aggressive interest rate hikes.

Japan's benchmark Nikkei 225 added 2.8% in afternoon trading to 26,959.25. South Korea's Kospi gained 2.5% to 2,209.98.

Australia's S&P/ASX 200 jumped 3.8% to 6,699.30 after its central bank boosted its benchmark interest rate for a sixth consecutive month to a nine-year high of 2.6%. The Reserve Bank of Australia’s increase of a quarter percentage point to the cash rate was smaller than those at recent monthly meetings.

When the bank lifted the rate by a quarter percentage point at its board meeting in May, it was the first rate hike in more than 11 years. It’s now at its highest point since August 2013, when the bank cut the rate from 2.75% to 2.5%.

Markets in Hong Kong and Shanghai were closed for holidays.

“Asian equities were positive on Tuesday after a corrective session as traders eye potentially oversold market conditions,” Anderson Alves at ActivTrades said in a report.

On Monday, Wall Street soared to its best day in months in a widespread relief rally after some unexpectedly weak data on the economy raised the possibility that the Federal Reserve won't have to be so aggressive about hiking interest rates.

The S&P 500's leap of 2.6% to 3,678.43 was its biggest since July, the latest swing for a scattershot market that’s been mostly falling this year on worries about a possible global recession.

The Dow Jones Industrial Average jumped 2.7%, to 29,490.89, and the Nasdaq composite gained 2.3% to 10,815.43.

Stocks took their cue from the bond market, where yields fell to ease some of the pressure that's been battering markets this year. The yield on the 10-year Treasury, which helps set rates for mortgages and many other kinds of loans, fell to 3.62% from 3.83% late Friday. It got as high as 4% last week after starting the year at just 1.51%.

A report on U.S. manufacturing came in weaker than expected, along with data showing a drop off in construction spending from July to August. That may seem discouraging, but could mean the Federal Reserve can ease off on raising interest rates to beat down the high inflation damaging households’ finances.

By raising rates, the Fed is making it more expensive to buy a house, a car or most anything else purchased on credit. The hope is to slow the economy just enough to starve inflation of the purchases needed to keep prices rising so quickly.

The Fed has already pulled its key overnight interest rate to a range of 3% to 3.25%, up from virtually zero as recently as March. Most traders expect it to be more than a full percentage point higher by early next year.

But stresses are building in financial markets and corporate profits have weakened as central banks around the world hike rates in concert.

The yield on the two-year Treasury, which more closely tracks expectations for Fed action, fell to 4.11% from 4.27% following the weaker-than-expected reports on the economy.

Besides stocks, lower rates also boost prices for everything from cryptocurrencies to gold, which can suddenly look a bit more attractive when bonds are paying less in income.

Stocks of high-growth companies and particularly risky or expensive investments have been the most affected by changes in rates. Bitcoin rallied Monday with the reprieve in yields, while technology stocks did the heaviest lifting to carry the S&P 500. Apple and Microsoft both rose more than 3%.

Monday’s rally came despite an 8.6% drop for Tesla, one of the most influential stocks on Wall Street because of its massive market value. The maker of electric vehicles delivered fewer vehicles from July through September than investors expected.

The latest update on the U.S. jobs market comes on Friday. Along with reports on inflation, the jobs report is one of the most highly anticipated pieces of data on Wall Street each month.

It will be the last jobs report before the Fed makes its next decision on interest rates, scheduled for Nov. 2. Continued strength would give the central bank more leeway to keep hiking. Traders say the likeliest move is a fourth straight increase of a whopping three-quarters of a percentage point, triple the usual move.

In energy trading, benchmark U.S. crude added 23 cents to $83.86 a barrel. It jumped Monday amid speculation big oil-producing countries could soon announce cuts to production. Shares of energy-producing companies made big gains. Exxon Mobil leaped 5.3%, and Chevron climbed 5.6%. Brent crude, the international standard, added 42 cents to $89.28 a barrel.

In currency trading, the U.S. dollar inched up to 144.84 Japanese yen from 144.81 yen. The euro cost 98.28 cents, inching down from 98.40 cents.

———

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

News Related

OTHER NEWS

Adrian Portelli makes the most of his recent record-breaking purchase on Channel Nine's The Block as he spends time at the property

Celebrity buyer Adrian Portelli appears to be making the most of his recent property purchase. The 33-year-old multi-millionaire shared a video to Instagram on Wednesday of himself and his friends ... Read more »

Ex-Man-Utd star Ronaldo close to agreeing Al-Nassr transfer worth a staggering €200m euros per year

CR7 left United by mutual consent this month Available on a free transfer Mega money deal on table in Saudi Arabia WHAT’S HAPPENING? According to Spanish publication Marca, Ronaldo has ... Read more »

Wales' actions immediately after after World Cup defeat to England speak volumes

Wales exited their first World Cup in 64 years with a whimper as they were deservedly beaten 3-0 by England. Rob Page’s side had held firm in a dull first ... Read more »

Disturbing moment schoolgirl is viciously punched and kicked by a bully at a bus stop - as two teenage girls are charged with stalking and assault

Student ruthlessly set upon while she waits at a bus stop by a school bully The girl from a western Sydney high school was punched and kicked Police charged two teenage girls with stalking and assault over the incidents NSW Department of Education say both attackers were suspended by the school Read more »

Steven Spielberg named as the architect of his own demise as ‘The Fabelmans’ disappoints at the box office

In a turn of events that perhaps bothers Steven Spielberg least of all, it looks like The Fabelmans isn’t going to be shaking things up at the box office. Having ... Read more »

Rio Tinto ploughing millions more into renewable assets in the iron-ore rich region of Pilbara in Australia - as it cracks on with mission to halve carbon emissions by 2030

Rio Tinto provides update on its plans to halve carbon emissions by 2030 Group will invest further £336m in renewable energy assets in the Pilbara region  Read more »

Keyless cars twice as likely to be stolen, claims insurer as relay attack thefts increase

Owners of cars with have been urged to take extra security measures after an insurer revealed a surge in claims involving the systems. Keyless entry and start are increasingly common ... Read more »

Jiang Zemin: former Chinese president who stabilised China after Tiananmen protests dies aged 96

The former president of Jiang Zemin has died at the age of 96. Jiang Zemin was one of the major figures of Chinese history in recent decades and supported economic ... Read more »

Harry Maguire heaps praise on Mancheser United teammate Marcus Rashford after brace against Wales

Harry Maguire believes Marcus Rashford proved he belongs on the global stage with his brace in England’s World Cup win over Wales. Read more »

England's first Test in Pakistan could be postponed by 24 hours after virus sweeps touring party

England's first Test in Pakistan for 17 years could be postponed by 24 hours after a number of the travelling players and staff were struck down by illness two days before the match in Rawalpindi. Read more »

ITV I'm A Celebrity's Sue Cleaver 'confirms' show 'feud' after campmate snub

Sue Cleaver I’m A Celebrity…Get Me Out of Here might be over but the drama continues. Former campmate Sue Cleaver has breathed new life into rumours of an in-camp feud, ... Read more »

DeSantis-backed school boards begin ousting Florida educators

TALLAHASSEE, Fla. — Republican Gov. Ron DeSantis put his weight behind dozens of conservative school board candidates across Florida during the midterms. Now they’re in office — and are purging ... Read more »

Commuters 'taken to the cleaners' as council rakes in nearly £600,000 in fines since opening new bus lane

Stockport council has raked in nearly £600,000 in fines since opening a new ‘bus gate’ back in February. Only buses, cyclists and licensed taxis are now allowed to travel down ... Read more »

Commuters face ELEVEN mile queues on M60 after lorry crash

M60 traffic Motorists face 11-mile queues after a lorry crash on the M60 today. Anti-clockwise traffic is congested from junction 16 for Clifton, Manchester, to the scene near junction 12 ... Read more »

South Korea scrambles fighter jets as Chinese and Russian warplanes enter its air defence zone

SKOREA-NKOREA-US-MISSILE-DEFENCE-MILITARY South Korea said it used its fighter jets as a tactical measure after two Chinese and six Russian warplanes entered its air defence area on Wednesday. South Korea’s joint ... Read more »

BBC Breakfast sparks further backlash as fans 'sick' of Wales World Cup coverage

On Wednesday’s BBC Breakfast, Sally Nugent and Jon Kay continued with their coverage of the World Cup 2022. Sports reporter John Watson was also in Qatar, giving live updates as ... Read more »

Ellie Goulding shows off new brunette locks as she takes to the stage at star-studded Christmas Carol concert

Ellie Goulding sported a new brunette hairdo as she attened the Fayre of St James Christmas Carol Concert at St James’ Church in London on Tuesday. The singer, 35, who has ... Read more »

Dominic West recreates Prince Charles' iconic breakdance on Jimmy Kimmel as he hits back at criticism from fans that he's 'too handsome' to play him in The Crown

Dominic West showed off his impressive break-dancing skills during an appearance on Jimmy Kimmel Live! on Tuesday night. The actor, 53, was a guest on the late-night show to discuss ... Read more »

The flood-proof home of the future: Designers envisage what houses will look like by 2072 amid rising sea levels - including buoyant foundations, inflatable rafts and kitchens on the TOP floor

'Flood-proof' house of the future has an upstairs kitchen and inflatable raftsBy 2072 experts say houses could have buoyant foundations and flood barriersA new report warns that 25,550 new homes are set to be built in flash flood risk areas without proper drainage Read more »

Forget the football...Qatar is also hosting the 'camel BEAUTY World Cup'! Long-legged beauties strut their stuff to be named the most attractive

The event takes place at Qatar Camel Mzayen club with many animals involvedYesterday, the winner of the Maghateer-type camels group was announced Her owner, Saudi Arabian Mohanna Ibrahim al-Anazi, got more than £45,000Popular event attracts thousands of spectators who watch things unfold   Read more »

Neco Williams: Wales defend decision to allow defender to play on after head injury

Robert Page has defended the decision to let Neco Williams play on after the Wales full-back suffered a head injury against England at the World Cup. Williams was dazed and ... Read more »

Fifa confirm rainbow items will be allowed in World Cup stadiums

Fifa have finally given public assurances that rainbow items and banners supporting protests in Iran will be allowed into stadiums at the World Cup, as first revealed by The Independent. ... Read more »

Lala Kent says she was ‘terrified’ of having sex while sober

Lala Kent attends Summer Spectacular Benefiting the Brent Shapiro Foundation on September 10, 2022 (Getty Images for Brent Shapiro F) Lala Kent has revealed that she felt “terrified” about having ... Read more »

Ambulance services will be ‘incredibly stretched’ during strike, says NHS chief

Ambulance service response times will be ‘stretched’ an NHS boss has warned (PA) (PA Wire) Ambulance response times will be “incredibly stretched” when thousands of 999 call handlers, paramedics and ... Read more »

Pearl: Acclaimed horror’s ‘ridiculous’ UK release date has infuriated film fans

(Universal Pictures) UK film fans wanting to watch Pearl in the cinema have been left furious by its release date. The acclaimed horror film, from director Ti West, is a ... Read more »

Grant Shapps attacked over ‘nonsense’ claim wind turbines too big to build onshore

Environmental groups condemned business secretary Grant Shapps for claiming wind turbines are “so big” they cannot be built on land. Mr Shapps defended Rishi Sunak’s de facto ban on new ... Read more »

History, hope and heartbreak: How Wales exited the 2022 World Cup

Wales’ first World Cup for 64 years proved a disappointment as they exited at the first round stage. Robert Page’s side scored one just goal in Qatar as they finished ... Read more »

Making Sense of Mobile IT Downtime

Written by Paul Waddilove, Managing Director, Getac UK Roughly 75-95% of the cost of an enterprise-use tablet is incurred after the initial purchase, according to VDC Research. IT downtime plays a major ... Read more »

Government too quick to hire expensive freelance managers

Government departments and local councils are too quick to hire external interim managers, making it more difficult to find cheaper permanent staff, the Financieele Dagblad reported on Wednesday. Market research ... Read more »

Court says no to paintballing wolves, citing lack of research

Photo: Depositphotos.com Plans to fire paintball guns at an apparently tame wolf in the Veluwe national park to scare it away from humans have been halted following a court ruling. ... Read more »

Why Val Kilmer Was Forced to Pull Out of Disney+’s Willow Series

Madmartigan’s return was closer than we thought. The new Disney+ series Willow, premiering Nov. 30 on the streamer, is based on the 1988 fantasy adventure movie of the same name. ... Read more »

Windows 10 networking command tools every user needs to know

Windows 10 ipconfig command Windows 10 makes it easy to connect to a network and the internet using a wired or wireless connection. However, sometimes, you may still need to ... Read more »

M25 Traffic: Severe delays near Brentwood stretching over eight-miles after huge crash involving three vehicles

M25 anticlockwise crash on motorway cameras Motorists are facing severe delays on the M25 following a road traffic collision involving three vehicles this morning (November 30). The incident happened on ... Read more »

The glamorous fiancée who's been by Marcus Rashford’s side since he was 15: England player's childhood sweetheart Lucia Loi 'offers him stability and assurance' as she cheers him on at the World Cup

England's Marcus Rashford, 25, is supported by his glamorous fiancée Lucia LoiThe couple have been dating since they were pupils at Ashton on Mersey schoolThey became engaged in May 2022 on a postseason getaway in California READ: Fans hail the return to form of Rashford after his brace against Wales Click here for the latest World Cup 2022 news, fixtures, live action and results Read more »

China's ex-leader Jiang Zemin, an influential reformer, has died at 96

Chinese President Jiang Zemin sings a selection from “Beijing Opera” on the last day of an eight-day visit to the U.S. on Nov. 2, 1997, in Los Angeles. Hector Mata/AFP ... Read more »

Research from Sprout.ai shows 1 in 5 insurance customers expect claims to be resolved within hours

Data released from claims automation technology firm Sprout.ai has shown that one in five (21%) insurance customers expect claims to be resolved within hours and 100% of 18-24 year olds expect a resolution within one week. Read more »

Universal International Studios Strikes Deal With Dominic Buchanan & Bennett McGhee’s Home Team

Bennett McGhee (left) and Dominic Buchanan Universal International Studios (UIS) has signed an exclusive deal with Home Team, the UK film and TV production outfit run by The End of ... Read more »

Qatar World Cup 2022 schedule: What games are on today and kick-off times, including Tunisia v France

The 2022 World Cup in Qatar has reached the business end of the group stages, and several teams have already booked their place in the next round. Amongst the teams ... Read more »

Treasury Yields Dip as Investors Await Key Labor Market Data

U.S. Treasury yields slipped on Wednesday as investors waited for key labor market data, which could provide hints about inflation and the impact of the Federal Reserve’s interest rate hikes. ... Read more »

Top five myths and concerns of electric car ownership busted - from performance to price

Electric car charging station and an electric charger With plans from the British Government to stop the sale of new petrol and diesel vehicles by 2030, it’s likely that the ... Read more »
Breaking thailand news, thai news, thailand news Verified News Story Network