Asian markets on the rise tied to positive US data
June 24, 2014 6:58 am
Major equity benchmarks however, enjoyed a rebound with bargain hunters looking to snap up cheap prices.The Stoxx Europe 600 Index gained 0.4% while the FTSE 100 in London added 0.3% and the DAX in Frankfurt up 0.2%.
In FX markets, the dollar gains some ground following recent weakness on the back of dovish Fed comments while the euro is steady at the $1.36 mark and UK sterling flat at the $1.70 level.
The Japanese yen nudged higher against the US dollar after possible indications that the Bank of Japan sees no urgent need inject further stimulus. The Nikkei 225 pared session losses to trade a little higher by the start of the European session.
BoJ Governor Haruhiko Kuroda in speech said that the central bank’s mission was to “ensure price stability” irrespective of the level of potential economic expansion. That means he is reluctant to add further stimulus into the economy as he’s suggested before to markets.
Other Asian markets rose overnight; Hong Kong’s Hang Seng Index rose 0.4% while the Shanghai Composite Index added 0.3% and South Korea’s Kospi index climbed 1%.
Much of the strength in Asia was attributed to the better tone out of the US markets on Monday after data showed US existing homes sales climbed 4.9% Markit’s US manufacturing report showed growth up at 57.5 in June from 56.4 in May.
Looking ahead, market participants have all eyes on US economic data with the Conference Board’s consumer confidence report in focus. We also have fresh data from the US housing market to watch for.
Major equity benchmarks however, enjoyed a rebound with bargain hunters looking to snap up cheap prices.The Stoxx Europe 600 Index gained 0.4% while the FTSE 100 in London added 0.3% and the DAX in Frankfurt up 0.2%.
In FX markets, the dollar gains some ground following recent weakness on the back of dovish Fed comments while the euro is steady at the $1.36 mark and UK sterling flat at the $1.70 level.
The Japanese yen nudged higher against the US dollar after possible indications that the Bank of Japan sees no urgent need inject further stimulus. The Nikkei 225 pared session losses to trade a little higher by the start of the European session.
BoJ Governor Haruhiko Kuroda in speech said that the central bank’s mission was to “ensure price stability” irrespective of the level of potential economic expansion. That means he is reluctant to add further stimulus into the economy as he’s suggested before to markets.
Other Asian markets rose overnight; Hong Kong’s Hang Seng Index rose 0.4% while the Shanghai Composite Index added 0.3% and South Korea’s Kospi index climbed 1%.
Much of the strength in Asia was attributed to the better tone out of the US markets on Monday after data showed US existing homes sales climbed 4.9% Markit’s US manufacturing report showed growth up at 57.5 in June from 56.4 in May.
Looking ahead, market participants have all eyes on US economic data with the Conference Board’s consumer confidence report in focus. We also have fresh data from the US housing market to watch for.
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