Market Buzz: Good news encourages growth
Asian shares have surged in Wednesday’s trade, following the gains for European and US stocks on Tuesday, after investors welcomed strong demand at a Spanish bond auction and a surprising rise in a German economic-sentiment indicator.
A slew of solid earnings boosted the outlook for US companies overnight, sending the Dow Jones Industrial Average 1.5% higher and the Nasdaq Composite 1.8% into the black.
Japan’s Nikkei Stock Average soared 1.8%, while South Korea’s Kospi gained 1%. Hong Kong’s Hang Seng Index advanced 1.5%, and the Shanghai Composite Index added 1.6%.
Despite positive news from abroad, the Russian indices failed to make it into positive territory on Tuesday, with the RTS finishing lower 0.14% and Micex losing 0.41%.
Kirill Markin from Investcafe says the Russian markets are set to start the trading session on a positive note, tracking overseas markets higher.
“Investor sentiment is upbeat this morning as they digested good news from Europe and the US,” he said.
In the absence of other keystone macroeconomic releases, investors’ eyes will be on UK February unemployment figures due out 08:30 GMT. Unemployment is expected to be standing at 8.4%, which is in the range of previous months’ results.