Asian share mostly higher after Wall St rally

18-Jul-2014 Intellasia | Dan | 6:00 AM Print This Post

Asian shares were mostly higher Thursday after the Dow on Wall Street ticked up another record high in response to strong earnings and a positive outlook on the US economy by the Federal Reserve.

Tokyo rose 0.36 percent, Hong Kong gained 0.13 percent, Sydney added 0.50 percent to sit near a six-year high and Seoul put on 0.44 percent but Shanghai eased 0.60 percent.

The mood remained largely buoyant after China said on Wednesday that the world’s number two economy and key driver of global growth expanded more than expected in the second quarter of the year.

US shares resumed their uptrend on Wednesday as traders welcomed a report from the Fed that said all 12 economic regions of the country continued to expand in the six weeks to July 7.

Pointing to generally higher consumer spending, with strong auto sales outperforming other retail segments, the bank’s Beige Book report is the latest to indicate the world’s top economy is getting back on track.

It also comes weeks after the Labour Department said far more jobs were created in June than forecast while unemployment slipped.

On Wall Street the Dow jumped 0.45 percent to a new record, while the S&P 500 gained 0.42 percent and the Nasdaq added 0.22 percent.

The US market was also cheering better-than-expected earnings from chip giant Intel and a “landmark” IBM partnership with Apple.

On currency markets the dollar dipped to 101.55 yen in Asian trade from 101.69 yen in New York Wednesday.

The greenback enjoyed a rally on Wednesday after Fed chief Janet Yellen told lawmakers on Capitol Hill that interest rates could rise “sooner and be more rapid than currently envisioned” if the jobs market strengthens further.

The euro bought $1.3527 and 137.49 yen in Tokyo, against $1.3524 and 137.55 yen in US trade.

Oil prices extended gains after a bullish US supply report indicated robust demand in the world’s top crude consumer.

US benchmark West Texas Intermediate for August delivery rose 32 cents to $101.52 while Brent crude for September gained six cents to $107.23.

Gold was at $1,301.94 at 0200 GMT compared with $1,298.75 late Wednesday.


Category: FinanceAsia

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