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Home / Business / Asian Stocks Up, Sentiment on US GDP Still Fragile By Reuters

Asian Stocks Up, Sentiment on US GDP Still Fragile By Reuters




© Reuters. FILE PHOTO: FILE PHOTO: An investor looks at an electronic stock information board at a brokerage house in Shanghai

By Andrew Galbraith

SHANGHAI (Reuters) – Asian equities rallied on Monday after strong economic growth in the US The first quarter was up to record highs, and the recovery was also supported by data showing that profits of Chinese industrial companies had grown for the first time in four months.

Despite uncertainty about the outlook for the global economy, investors were waiting for a meeting with the US Federal Reserve this week and Chinese factory data for further evidence of policy direction in the world's largest economies.

The MSCI index, the highest in the Asia-Pacific region outside Japan, gained 0.38 percent, recovering from its largest weekly decline in over a month last week.

Chinese blue chips rose 1

percent after a 5.6 percent loss last week.

Australian equities fell 0.43 percent after an eleven-year high on Friday, while Seoul's rose 0.74 percent.

Japan's financial markets are closed this week for a long national holiday, but in Singapore by 0.85 percent.

Monday's profits follow data showing that US gross domestic product rose faster Overallized annualized rate of 3.2 percent in the first quarter. On a positive note, Chinese data grew in March after a four-month slowdown in March, but analysts said sentiment remains fragile.

"Investors are looking for growth in the direction of growth, but at the same time there are still a lot of" uncertainties in US-China trading and the US dollar, "said Joanne Goh, equity strategist at DBS Bank in Singapore.

"A strong US dollar does not speak well for the Asian markets," she added 19659004] Contrary to last week's weakness in Asian markets, Wall Street ended Friday on a high note, driven by GDP figures

The number rose 0.31 percent to 26,543.33 and the increase by 0.34 percent to 8,146.40. ()

The S & P 500 rose 0.47 percent to 2,939.88 and Stephen Innes, Managing Partner of SPI Asset Management, said that profits contributed to market growth despite better-than-expected earnings, and saw investor positioning in the S & # 39; P "excessive erwei was "tert.

"We are transitioning from a state where it is a stock rally nobody wants to do to a raging fray in which hedge funds and investors are equally active in chasing markets like greyhounds to the mechanical rabbit" he said in a note.

While strong US GDP data eased fears of an impending recession, investors noted that this was driven by lower trade deficits and high accumulation of unsold goods as consumer spending and corporate spending slowed sharply.

The March reading for core spending on personal consumption (PCE), the Fed's favored inflation measure, is due later on Monday. The Federal Reserve's Federal Open Market Committee (FOMC) will announce its political decision on Wednesday. Chairman Jerome Powell expects to reconcile strong domestic growth data with ongoing concerns about the global outlook.

Markets will also focus on global factory activity polls this week, especially official and private readings on Chinese industry, both of which will be released on Tuesday.

SEARCHING FOR STIMULUS

Chinese companies are returning to profit growth in March, doubting how much more stimulus Beijing can trigger without taking a risk of rapid increases in debt and potential asset bubbles.

"The hope that more impetus will come from China is likely to decrease," said Goh of DBS.

"If the FOMC continues to confirm the Fed To see the outlook for interest rates rather bleak, I think investors will assume," she said.

As Japan had a longer break, the currency markets were quiet at FOMC meeting and the number of US jobs. The dollar remained at 111.60 against the yen and the euro rose 0.05 percent to $ 1.1154.

The one who tracks the greenback against a basket of six major rivals fell 0.03 percent to 97.981.

fell 0.5 percent to $ 62.98 a barrel and continued to fall after US President Donald Trump on Friday pressured the oil exporting countries' organization to increase oil production to cut gasoline prices.

fell 0.37 percent to $ 71.88 a barrel.

was unchanged, trading at $ 1,285.78 an ounce. [GOL/]


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