Asia stocks halt selling as U.S. data calm investor nerves
Asian stocks clawed back some of this week’s losses on Friday after a solid set of U.S. data calmed turbulence in global financial markets, though underlying worries about slowing world economic growth kept investors on edge.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.2 percent, though it is likely to log its sixth straight week of losses with a fall of 0.5 percent so far this week.
The positive mood did not last long in Japanese markets, however, where the Nikkei share average .N225 fell 0.5 percent to 4-1/2-month lows.
Oil LCOc1 and metal prices also recovered some ground.
Helping calm investor nerves was data overnight showing the number of Americans filing new claims for jobless benefits fell to a 14-year low last week USJPB=ECI and industrial output USIP=ECI rose sharply in September after a fall in the previous month.
A possible recession in Europe, a floundering economy in Japan, a slowdown in China and the Ebola virus outbreak have all conspired to rattle investors, triggering tumult in financial markets and a bout of volatility not seen in years.
U.S. stocks had another choppy session on Thursday but managed to stay above multi-month lows hit the previous day, with the S&P 500 Index .SPX ending flat.
The Volatility index .VIX, viewed as a gauge of investor fears, eased to 25.2 percent from a 2 1/2 year high above 31 percent hit on Wednesday.
“I expect market volatility to gradually to come down. Loss-cutting trades will come to an end soon after a hectic week and markets will be looking to what kind of policy options major countries can adopt now,” said Makoto Noji, senior strategist at SMBC Nikko Securities.
The euro gave back some of Wednesday’s gains on the greenback to be at $1.2811 EUR=, off this week’s high of
$1.2887.
The common currency was undermined by a sharp sell-off in periphery euro zone countries debt.
Greek government bonds were the hardest hit, with 10-year yields rising to nearly 9 percent, while Spain missed its target at a bond auction due to weak demand from investors.
Source: Reuters- Asia stocks halt selling as U.S. data calm investor nerves
