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Friday, August 12, 2022
Stocks & Shares

Asian stocks hit their highest level in 5 weeks

Asian stocks

MSCI’s broadest index of Asia-Pacific shares outside Japan traded up 0.16% to 601.3, the strongest since Feb. 24

Asian stocks ticked up to their highest in more than a month supported by broad gains on Wall Street on Tuesday, while the euro was stuck near a one-week low against the dollar amid talk of more sanctions against Moscow.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded up 0.16% to 601.3, the strongest since Feb. 24. The benchmark has lost 4% so far this year, dragged by big declines in Chinese shares.

US stocks ended higher on Monday, driven by tech shares.

Prime broking data in the U.S. continues to indicate the recent recovery in equities is being driven by retail money, which is likely squeezing those who were under positioned or positioned short, Tapas Strickland, director of economics and markets at NAB, said in a note.

Profit reporting season in the U.S. kicks off next week and it will be interesting to see how firms are interpreting the tea leaves, and whether earnings guidance is revised down, he said.

Global stocks have had a volatile quarter as the Russia-Ukraine crisis and worries over higher commodity prices fuel inflation concerns and cloud the direction of interest rates.

Japan’s Nikkei traded flat, the S&P/ASX 200 index was 0.5% higher while South Korean stocks dropped 0.2%.

Markets in mainland China and Hong Kong were closed for a public holiday on Tuesday. Shanghai went into a two-stage lockdown last week as authorities worked to contain the city’s biggest ever COVID-19 outbreak.

Market focus will be on Australia’s central bank’s guidance on its response to inflationary pressures though it is expected to hold rates steady at its review later on Tuesday. The Aussie was steady at $0.7543, staying close to Monday’s high of $0.75565, a level not seen since July 6.

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