Asian shares are higher, driven by encouraging signs that the US economy is recovering from the pandemic
Bangkok – Asian shares gained momentum on Friday, driven by encouraging signs that the US economic recovery is picking up pace from the epidemic.
President Joe Biden’s proposal of a $ 6 trillion budget also boosted the purchase of shares benefiting from heavy government spending.
Tokyo’s Nikkei 225 index climbed 2.1% and other regional benchmarks were all higher.
Shares of the logistics arm of Chinese online retail giant JD.com Inc. rose 4.3% on its first trading day in Hong Kong when it raised 24 billion Hong Kong dollars ($ 3.1 billion) by selling a portion of the unit to outside investors.
JD Logistics Inc. is the latest technology company to be listed in the semi-autonomous Chinese city as Beijing steps up industry scrutiny. Its IPO was the second largest for the market this year after raising $ 5.3 billion by short video firm Kuishau.
The market was boosted by mostly positive reports. The number of Americans applying for unemployment benefits again plummeted to an epidemic low of 406,000.
Although the Commerce Department reported that sales of durable goods declined by 1.3%, it also released updated data showing that the US economy grew at a 6.4% annual rate in the first quarter as a growing number of people were vaccinated, Due to which the economy shifted back to normal. Activity.
IG’s Jun Rong Yep said in a comment, “Optimism around US economic data is fueling the recovery theme and could potentially spur some catch-up growth in the Asia index, as they are lagging behind . “
Tokyo rose 600 points to 29,149.41 while Hang Seng in Hong Kong was flat at 29,123.51. In Seoul, the Kospi jumped 0.7% to 3,188.73. The Shanghai Composite Index lost 0.4% to 3,595.41 and Sydney’s S & P / ASX 200 rose 1.2% to 7,179.50.
The S&P 500 rose 0.1% to 4,200.88 on Thursday. It was on track for a gain of nearly 1% this week. It reached an all-time high on 7 May, but then fell for two consecutive weeks.
Industrial and financial stocks were the biggest gainers. General Electric jumped 7.1% for the biggest gain in the S&P 500, while Boeing added 3.9% and JPMorgan Chase added 1.6%. Those benefits were largely controlled by slides in technology companies. Health care and home goods manufacturers also lagged behind the broader market. Treasury yields and energy prices rose.
The Dow Jones Industrial Average rose 0.4% to 34,464.64. The decline in technology shares left the Nasdaq essentially flat. It slipped less than 0.1% to 13,736.28.
In another sign that investors were confident about the economy going forward, the Russell 2000 Index of short stocks outperformed the broader market, rising 1.1% to 2,273.07.
As they monitor inflation, investors are waiting for the Commerce Department’s Personal Consumption Expenditure Index to be released on Friday, more commonly known as PCE. The Federal Reserve, whose job it is to monitor and control inflation, relies on PCE data exceeding the better known Consumer Price Index or CPI when making policy decisions.
Analysts have stated that they believe the rise in prices is mainly due to the recession caused by the epidemic. Should they continue, the concern is that the Fed will tighten the policy and raise interest rates to try to cool it down.
This week the bond yields have gained momentum. The 10-year US Treasury note was trading at a yield of 1.62% on Friday, up from 1.57% on Wednesday. But for the last two weeks it has remained around the same level.
In other trade, US benchmark crude oil rose 3 cents to $66.88 a barrel in electronic trading on the New York Mercantile Exchange. It rose 64 cents to $66.85 on Thursday. Brent crude, the international pricing standard, declined by 9 cents to $ 94.16 a barrel.
The dollar rose from 109.83 yen to 109.91 Japanese yen late Thursday. The euro fell from $ 1.2196 to $ 1.2176.