Asian Shares Advance On Dovish Fed Comments
Asian stocks ended broadly higher on Tuesday, as dovish comments from a series of Federal Reserve officials helped quell concerns about inflation and fears of monetary tightening.
Investors now keenly await inflation data due in the United States later this week for more clues about when the central bank might start tapering its bond purchases.
Chinese shares surged to their highest level since March as Beijing’s efforts to talk down commodity prices helped ease investor concerns about inflation.
The benchmark Shanghai Composite Index rallied 84.06 points, or 2.4 percent, to 3,581.34, while Hong Kong’s Hang Seng Index surged up 498.60 points, or 1.8 percent, at 28,910.86.
Shares of beverage company Kweichow Moutai Co. jumped 6 percent a day after Chinese media outlets reported that its parent company aimed to double revenue by 2025.
Japanese shares finished notably higher as a strong finish by the Nasdaq overnight boosted tech stocks. Tokyo Electron climbed 1.8 percent, Screen Holdings jumped 2.1 percent and Advantest added 2.4 percent.
The Nikkei 225 Index rose 189.37 points, or 0.7 percent, to 28,553.98, while the broader Topix closed 0.3 percent higher at 1,919.52.
The upside was capped after reports suggested that Japan was leaning towards extending emergency measures beyond May 31.
Airliners ANA Holdings and Japan Airlines dropped around 0.8 percent each after the U.S. State Department urged against travel to Japan.
Australian markets rose for a fourth day to reach a two-week high, with banks and miners pacing the gainers. The S&P/ASX 200 Index rallied 69.30 points, or 1 percent, to 7,115.20, while the broader All Ordinaries Index ended up 73.10 points, or 1 percent, at 7,349.10.
Miners BHP, Fortescue Metals Group and Rio Tinto gained between 1.3 percent and 1.6 percent. The big banks all rose about 1 percent. Energy stocks posted modest gains as oil prices climbed the most in a month on expectations of a boost in demand due to COVID-19 vaccinations.
Technology One shares jumped 2.1 percent after the software firm reported a 48 percent spike in profit for the first half. In the healthcare sector, heavyweight CSL added 0.9 percent.
Seoul stocks advanced as inflation fears ebbed and a survey showed consumer confidence in South Korea picked up steam in May.
The benchmark Kospi ended up 27.02 points, or 0.9 percent, at 3,171.32, snapping a three-day losing streak as foreign investors turned net buyers ahead of the Bank of Korea’s rate decision due Thursday.
The country’s central bank is seen keeping its interest rates at record lows for the rest of 2021 amid COVID-19 uncertainties and lingering worries about financial imbalances.
Meanwhile, New Zealand shares fell, with the benchmark NZX 50 Index ending down 107.81 points, or 0.7 percent, at 12,341.19 ahead of the Reserve Bank of New Zealand’s policy decision due Wednesday.
Most economists expect the central bank to hold the official cash rate at a record low of 0.25 percent and upgrade its economic forecasts.
U.S. stocks climbed overnight, as a pullback in U.S. Treasury yields and the Biden administration’s decision to pare down its infrastructure plan helped ease inflation concerns for the time being.
The Dow rose half a percent, the S&P 500 gained 1 percent and the tech-heavy Nasdaq Composite rallied 1.4 percent.
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