Share

Asia stocks rebound as dealers follow US, Europe lead

Hong Kong - Most Asian stock markets advanced strongly on Tuesday, mirroring rallies in Europe and New York as the initial shock from the deadly Paris attacks wore off.

While Friday's carnage, which left 129 people dead, fuelled fears in the region about the effects on the already troubled European economy, confidence was buoyed by a defiant reaction around the world.

The three main markets on Wall Street each ended sharply higher, while London and Frankfurt also advanced and Paris pared early selling to end only marginally lower.

That filtered through on Tuesday to Asia's trading floors, with Tokyo, Hong Kong and Sydney all posting healthy gains. However, Shanghai edged down in late deals after bucking the trend on Monday and climbing.

In Europe Paris rose 0.96% at Tuesday's open, while Frankfurt advanced 0.91% and London jumped 1.15%.

"Good gains in overnight US markets should wash across" into Asia, said Tony Farnham, a strategist at Patersons Securities in Sydney. "Initial cautiousness has quickly dissipated."

Energy firms were big gainers, rising in line with oil prices as it emerged that US-led jets targeted the Islamic State group's oil operations in retaliation for the Paris horror.

The latest developments renewed the possibility of a rise in the level of conflict in the Syria-Iraq region that some fear could disrupt oil output.

Hong Kong-traded CNOOC surged more than three percent, while Inpex in Tokyo added more than two percent, while JX Holdings jumped 3.4%. Sydney-listed Origin rallied 7.4%.

Euro retreats

The euro, which turned down against the dollar and yen on Monday, continued to face pressure after a key official at the European Central Bank suggested it would further loosen its monetary policy.

"It's key for a central bank to keep inflation expectations anchored, especially in a period of slack in the economy, and we have some signals that these inflation expectations are still fragile," Executive Board member Peter Praet said in a Bloomberg interview in Frankfurt Monday.

"There are risks and this is why we're considering further action."

His comments come as the eurozone economy struggles to pick up and prices remain subdued, with a multi-billion-euro bond-buying scheme aimed at boosting lending unable to get traction.

The bank's chief Mario Draghi last month hinted at a widening of the programme in December, which - combined with expectations of a US interest rate hike before 2016 - has pushed the euro to multi-month lows.

On Tuesday the single currency fell to $1.0656, its lowest since April, at one point before edging back marginally.

The yen was also weaker after Monday's news that Japan had slipped back into recession for the second time in Prime Minister Shinzo Abe's tenure increased the likelihood the country's central bank would ramp up its own stimulus.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
-0.1%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
906.59
+1.1%
Palladium
1,012.66
+1.1%
Gold
2,221.84
+1.2%
Silver
24.88
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders