Asian shares gain on earnings optimism, dovish Fed
Asian shares climbed to one-month highs on Wednesday, steered by a robust Wall Street on optimism over corporate earnings and prospects the U.S. Federal Reserve will reaffirm its willingness to wait for an extended period before raising interest rates.
European shares are expected to follow suit, with spreadbetters looking to gains of up to 0.4 percent in Germany’s DAX and Britain’s FTSE.
U.S. stocks rose more than 1 percent on Tuesday, with the S&P 500 coming less than two percent below its record peak set last month.
Still Fed officials have also stressed they are in no hurry to take policy tightening a step further by raising rates from near zero levels due to subdued inflation and the poor quality of a recovery in labor markets.
Upbeat U.S. earnings so far have also eased worries that corporate profits might be squeezed by sluggish global growth.
U.S. economic data published on Tuesday was mixed. But a rise in consumer confidence to a seven-year high gave stock bulls enough reason to maintain their optimism on the economic recovery.
Overnight, one of the factors that may hold back risk sentiment is news that the U.S. Department of Homeland Security was increasing security at government buildings in Washington and other cities because of continuing terror attack threats.
Source: Reuters-Asian shares gain on earnings optimism, dovish Fed
