Asian shares bask in glow of U.S. tech earnings
Asian shares rose on Wednesday as upbeat results from two U.S. technology bellwethers and hopes of fresh stimulus from the European Central Bank offset concerns about the outlook for the global economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1 percent to a nearly two-week high, while Japan’s Nikkei stock average .N225 ended 2.6 percent higher, clawing back ground lost in Tuesday’s 2 percent drop.
Sentiment also got a lift from a Reuters report that the ECB is considering buying corporate bonds, a step that would help banks free up more of their balance sheets for lending. The ECB might decide on the matter as soon as December with a view to begin purchases early next year, several sources familiar with the situation said.
“The news triggered bargain-hunting as Japanese shares have fallen to levels which priced in the worst-case scenario,” said Toru Ibayashi, executive director at UBS Wealth Management, referring to fears that Europe’s economy would fall back into recession.
Data on Tuesday showing a stronger-than-expected 2.4 percent rise in U.S. domestic home resales last month provided evidence that the U.S. economic recovery maintained momentum and also put upward pressure on yields.
“Our thesis of USD outperformance driven by relative U.S. strength and interest rate divergence remains intact, but is at risk of delay pending soft underlying inflation trends.”
Source: Reuters– Asian shares bask in glow of U.S. tech earnings
