Asian Stocks Rise As Wall Street Rally Continues
Tuesday saw an overall higher trend in Asian markets, helped by the surge on Wall Street. The publication of U.S. consumer pricing data later in the day is anxiously anticipated by investors.
Yeap Jun Rong, a market analyst at IG, claims that despite the fact that there is still a lot of uncertainty, the attitudes are primarily reflecting the favorable handover from Wall Street.
Mixed Recovery Signs for Japan
Government statistics revealed a conflicting picture of Japan’s economic recovery, with the nation’s GDP expanding at an annual rate of 0.6% in the third quarter of 2010 to 2012. The relaxation of the coronavirus pandemic-related limitations in Japan and overseas was blamed for this expansion.
The Cabinet Office reports that local travel, tourism, and exports have all returned, which has caused the Nikkei 225 to rise 0.6% in morning trade. While Hong Kong’s Hang Seng and Shanghai Composite stayed largely constant, other Asian markets, such as Australia’s S&P/ASX 200 and South Korea’s Kospi, also had minor gains.
Stocks React in Line with Expectations of US Inflation Report
The S&P 500 increased 1.1% in response to Tuesday’s news on national consumer inflation rates. The Nasdaq Composite and the Dow Jones Industrial Average both had growth of 1.1% and 1.5 percent, respectively.
As the market has suffered for more than a year owing to worries about soaring inflation, stocks were recovering from their worst week in over two months. The yield on the 10-year Treasury fell a little bit, while the yield on the two-year Treasury stayed quite near its highest level since November.
Season of Earnings Expects a Nearly 5% Drop
S&P 500 companies are anticipated to post earnings that are roughly 5% lower than they were in the same quarter last year. According to Credit Suisse, this is shaping up to be the worst earnings season outside of a recession in 24 years.
Despite a 7.8% surge in the S&P 500, Morgan Stanley strategists are still wary about the stock market’s recent uptrend. This concern is attributed to the Fed’s choice to raise interest rates during an earnings recession and the ongoing decrease in corporate profits.
Crude Oil Prices Are Falling in Energy Trading
Benchmark U.S. oil for energy trade dropped $1.03 to $79.11 per barrel on the New York Mercantile Exchange. The worldwide benchmark for prices, Brent crude, also dropped by 81 cents to $95.80 a barrel.