Asian stock markets saw a general uptick on Thursday, buoyed by optimism from record highs on Wall Street. Major indices across the region showed gains as investor sentiment improved, bolstered by hopes of economic stimulus in China and strong performances in the U.S. stock market.
Key Performances Across Asian Markets
Japan’s benchmark Nikkei 225 edged up by 0.3% to 39,390.33, continuing its steady performance. The South Korean Kospi rose 0.5% to close at 2,607.45, while Australia's S&P/ASX 200 advanced by 0.4% to 8,223.00.
Hong Kong’s Hang Seng Index surged by an impressive 3.7%, recovering to 21,409.30 after a volatile week. Earlier, the Hang Seng had experienced its worst drop since the 2008 global financial crisis, losing more than 9%. Rebounding as well, the Shanghai Composite Index increased 2.7% to 3,348.31.
Chinese Markets Boosted by Stimulus Hopes
Earlier in the week, Chinese stocks had slumped after a lack of concrete stimulus measures from Beijing left investors disappointed. However, optimism returned following an announcement from China’s Finance Ministry, which indicated that a briefing on potential economic policies is scheduled for Saturday.
"There is still a glimmer of hope that Beijing might come in with a fiscal stimulus lifeline in October to restart GDP," said Stephen Innes, managing partner at SPI Asset Management. The market is waiting for the next big thing to happen, all poised.
Wall Street Sets New Records
On Wall Street, the S&P 500 rose 0.7%, surpassing its all-time high set the previous week. The Dow Jones Industrial Average climbed 431 points, or 1%, setting its own record, while the Nasdaq composite increased by 0.6%.
Cruise-ship companies led the gains, with Norwegian Cruise Line soaring 10.9% after a positive stock upgrade from Citi analysts, who pointed to growth potential for the industry well into 2025. Carnival gained 7%, and Royal Caribbean Group saw a 5.3% increase.
Furthermore, with an 8.9% increase, KinderCare Learning had a great start on the New York Stock Exchange. Among the best performances of the day was the business, which runs more than 2,400 early childhood education centers across the United States.
Setbacks for Boeing and Alphabet
Not all sectors benefited from the market rally. Boeing shares dropped 3.4% after the company withdrew a contract offer during a breakdown in labor talks with striking workers. The offer included a 30% wage increase over four years.
Alphabet also struggled, with its shares falling 1.5%. The U.S. Department of Justice is considering seeking a federal judge’s order to break up Google’s search business, which has been labeled an illegal monopoly.
Market Overview
Overall, the S&P 500 rose 40.91 points, closing at 5,792.04. The Dow climbed 431.63 points to reach 42,512.00, and the Nasdaq composite gained 108.70 points, finishing at 18,291.62.
Oil and Bond Markets
In the oil market, Brent crude, the international benchmark, recovered slightly, gaining 57 cents to reach $77.15 a barrel after briefly surpassing $81 earlier in the week. U.S. crude also gained 60 cents, closing at $73.84 per barrel.
Earlier surges in oil prices, driven by concerns over rising tensions in the Middle East, had contributed to the S&P 500’s worst single-day loss in a month.
The yield on the 10-year Treasury increased to 4.07% in the bond market from 4.01% the day before.. Treasury yields have fluctuated sharply in recent weeks, following market expectations for the Federal Reserve’s future interest rate decisions.
U.S. Dollar and Currency Movements
In currency markets, the U.S. dollar slightly appreciated against the Japanese yen, rising to 149.33 yen from 149.16 yen. The euro remained stable, trading at $1.0943.
Conclusion
Global markets continue to show resilience, with Wall Street’s record highs providing a boost to Asian markets. Investors are now looking to potential policy announcements from China as a critical factor in sustaining the momentum. In the meanwhile, short-term market performance is anticipated to be impacted by changes in the bond and oil markets.
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