Asian stocks rebound as Wall St futures gain after holiday
BEIJING (AP) — Asian stocks rebounded on Tuesday as Wall Street futures rose while U.S. markets were closed for a holiday.
Shanghai, Tokyo, Hong Kong and Sydney won. Oil prices rebounded to over $110 a barrel.
Futures for Wall Street’s benchmark S&P 500 rose 1.4% after a three-day holiday weekend.
“Today’s gains attempt to pare previous losses, suggesting the presence of bearish buyers,” IG’s Yeap Jun Rong said in a report.
The Shanghai Composite Index gained less than 0.1% to 3,318.29 and the Nikkei 225 in Tokyo gained 1.8% to 26,225.15. Hong Kong’s Hang Seng advanced 1% to 21,368.85.
Seoul’s Kospi rose 0.4% to 2,398.95 and Sydney’s S&P-ASX 200 rose 1.2% to 6,509.80.
The New Zealand and Southeast Asian markets grew.
Investors fear that efforts by US and European central banks to rein in inflation, which is at its highest level in four decades, could derail global economic growth.
Japan and China, two of the three largest economies, avoided joining in the rate hikes. On Monday, the Chinese central bank left its key rates unchanged. The Bank of Japan stuck to its near-zero interest rate policy last week despite fears of a weaker yen exchange rate.
The S&P 500 has fallen more than 20% since its peak on Jan. 3, putting it in what traders call a bear market.
Investors are looking for clues about the Fed’s plans for possible additional rate hikes when Chairman Jerome Powell speaks before congressional committees this week.
On Monday, European stock markets rose. Shanghai, Tokyo and Seoul fell.
In energy markets, benchmark U.S. crude jumped $2.47 to $110.45 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oil trade, gained $1.46 to $115.59 a barrel in London.
The dollar remained stable at 135 to the yen. The euro gained $1.0529 from $1.0491.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.