Share

Asian stock markets gain after Wall Street rally

Beijing - Asian stocks rose on Monday after Wall Street rallied as investors looked ahead to the US Federal Reserve chairman's congressional testimony this week for insights into its economic outlook.

KEEPING SCORE: The Shanghai Composite Index rose 0.7% to 3 313.75 and Tokyo's Nikkei 225 advanced 1.2% to 22 151.49. Hong Kong's Hang Seng gained 0.6% to 31.457.12 while Seoul's Kospi added 1 point to 2 452.68.

Sydney's S&P-ASX 200 gained 0.6% to 6 033.00 while India's Sensex was up 0.7% at 34 394.55. Benchmarks in Taiwan, New Zealand and Singapore rose while Manila and Jakarta fell.

WALL STREET: Wall Street capped several days of choppy trading with a rally that gave the stock market a modest gain for the week. Technology companies, banks and health care stocks accounted for much of the market's gains.

Energy companies also rose along with crude oil prices. The Standard & Poor's 500 index climbed 1.6 percent to 2,747.30. The Dow Jones industrial average picked up 1.4% to 25 309.99. The Nasdaq composite gained 1.8% to 7 337.39.

FED WATCH: Investors are watching Chairman Jerome Powell's testimony Tuesday for insight into the Fed's outlook. Private sector analysts expect few significant changes in forecasts US inflation will rise toward its 2% target and wage growth will stay moderate.

Some traders are looking for the Fed to affirm a gradual pace of one interest rate hike per quarter this year.

ANALYST'S TAKE: "Obviously the biggest aspect from Fed Powell's first testimony to Congress to watch would be comments surrounding interest rate and inflation expectations, but one should not be surprised if the Fed chair rehashes the current rhetoric in order to not rock the market," said Jingyi Pan of IG in a report.

"Over and above the views on rates, insights into the recent bout of volatility and debt concerns may also be market-moving pieces."
THIS WEEK: A Chinese industry group releases its February manufacturing barometer on Tuesday amid expectations it may show activity edging down due to the Lunar New Year holiday leaving the month with fewer work days.

Also Tuesday, the South Korean central bank holds a policy meeting, but forecasters expect no additional rate hike.

On Wednesday, India reports fourth quarter gross domestic product; and the consensus calls for 6.9% growth over a year earlier. India's central bank is due to release minutes of its February meeting.

On Thursday, Australia reports private investment growth.

ENERGY: Benchmark US crude gained 25 cents to $63.80 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 78 cents on Friday to close at $63.55. Brent crude, used to price international oils, advanced 15 cents to $67.46 in London. It jumped 92 cents the previous session to $67.31.

CURRENCY: The dollar declined to ¥106.49 from Friday's ¥106.88. The euro gained to $1.2317 from $1.2298.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
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
19.00
-0.5%
Rand - Pound
24.02
-0.5%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.6%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,209.06
+0.7%
Silver
24.59
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,122
+0.7%
All Share
74,310
+0.5%
Resource 10
56,908
+2.2%
Industrial 25
103,615
+0.3%
Financial 15
16,488
-0.2%
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