Hong Kong, Oct. 5 (BNA): Asian shares rose on Wednesday as investors grew hopeful that future global interest rate hikes would become less aggressive amid early signs that earlier policy tightening was easing price pressures in some major world economies.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5%, after US stocks ended the previous session with gains. The index is down 0.6% so far this month.
Australian shares are up 1.35% in early trade, while Japan’s Nikkei is up 0.34%.
Hong Kong’s Hang Seng Index is up 3.76% a day after its public holiday while mainland Chinese markets remain closed for holidays.
The strong start for Australian shares is the first gain in two days since September 13 and follows the best day for the stock market in more than two years on Tuesday after the Reserve Bank of Australia ordered a lower-than-expected rate hike by 25 basis points. mentioned.
On Wall Street, the Dow Jones and Standard & Poor’s 500 indexes posted their biggest gains in two days in two years as fears of a rate hike fade.
Positive sentiment was inflamed after US job opportunities fell by more than 2-1/2 in August in a sign that the Federal Reserve’s mission to tame demand by raising interest rates was working.
“Markets regained more ground lost in several slippery weeks on Wall Street, amid hopes that the Federal Reserve will adjust its aggressive approach to its plans to raise interest rates after data showing a drop in job opportunities in the country,” research analyst Ord Minnett wrote in a note. to the customer on Wednesday.
However, in a sign that some central banks remain concerned about inflation, New Zealand raised its rates by 50 basis points on Wednesday, as expected, but said it considered a 75 basis point increase.
The Dow Jones Industrial Average rose 2.8%, the S&P 500 rose 3.06%, and the Nasdaq Composite rose 3.34%.
The S&P 500 made its third best start in October since 1930, according to Macquarie analysts.
“Global financial markets saw a sharp recovery backed by expectations that central banks may follow suit and ease the pace of monetary tightening,” ANZ analysts said.
“Opinions are mixed on whether the markets have now bottomed or whether this recovery will be short-lived.”
The yield on the benchmark 10-year Treasury bond rose to 3.625% compared to its US close of 3.617% on Tuesday.
The two-year yield, which rose as traders expected an increase in the Fed funds rate, rose to 4.0905% compared to the US close of 4.097%.
The dollar fell 0.21% against the yen to 143.79. .
The euro was down 0.1% on the day at $0.9974, having gained 1.79% in one month, while the dollar index, which measures the US currency against a basket of the currencies of other major trading partners, has fallen nearly 4% since the first of its kind. September. 26.
“The big move in the US dollar down since hitting a 20-plus year high last Wednesday, is a perfectly logical response to the combination of cleverly lower US bond yields and improving risk sentiment,” NAB analysts wrote on Wednesday.
US crude fell 0.15 percent to $86.39 a barrel. Brent crude fell $91.80 a barrel.
Gold was a little lower. Spot gold was trading at $1,724.6667 an ounce.
HF