Written by Alvin Scott
NEW YORK (Reuters) – Asian stocks gained on Wednesday, boosted by US moves, which followed stronger-than-expected production indicators, while the dollar emerged from a recent low against the euro.
Investors in Asia are waiting for Australia’s GDP data, which is expected to confirm that the economy has fallen into its deepest slump after the Great Recession.
However, market analyst Tom Pyotrovsky, a market analyst at Australian broker Comzek, said market participants may now see worse historical numbers as recent reports suggest that global recovery is accelerating.
“The big picture comes together well,” he said.
He noted that the risk to Australia’s GDP is higher than expected, which could help sentiment. Australian stocks, which have not performed well due to the strong local currency, may also support the recent rise in the dollar.
The Australian S&P / ASX 200 futures are up 0.39% in early trade.
The strong Wall Street finish on Tuesday set a positive tone. Both the Nasdaq and the S&P 500 will launch at a higher note on Tuesday in September.
For a graphic on 2020 global asset performance:
Those gains came after U.S. manufacturing indicators showed expansion, and the reading of the Institute of Supply Management peaked at almost two years.
Eurozone manufacturing activity also grew last month to keep pace with the recovery, despite factory managers being wary of investing and hiring more workers.
“The market is seeing a lot of positive momentum at the moment.” Sounds like moving. “
Governor Lyle Brinard said the US Federal Reserve had given more support to the economy as it said the central bank should provide more incentives to fulfill its promise of strong job growth and higher inflation.
U.S. Treasury Secretary Steven Munuchin told a congressional committee that he was ready to provide more money to state and local governments, a key point in the fight for greater impetus.
On Tuesday, White House Chief of Staff Mark Meadows announced that Senate Republicans would provide $ 500 billion in additional federal aid to their Govt-19 relief bill next week.
U.S. stocks received a boost from tech stocks as Apple (Nasdaq 🙂 rose 3.98% as the company asked suppliers to make at least 75 million 5G iPhones later this year.
Up 0.76%, the S&P 500 up 0.75% and up 1.39%.
For a graphic about the Dollar Dive in 2020 Dollar Dive in 2020:
Better-than-expected U.S. production data helped push up oil prices on Tuesday, suggesting additional demand for fuel as the economy recovers.
The future is set at $ 45.58 a barrel for 30 coins. U.S. West Texas Intermediate futures rose 15 cents to $ 42.76 a barrel.
The dollar stabilized 0.1% against major currencies as the euro dropped some of its recent gains. The common currency previously rose above 20 1.20 for the first time since May 2018.