Precise Investors

Stocks & Shares

Asian shares follow Wall Street higher

Wall Street

Nikkei 225 index gained 2.1% to 29,099.93, Hang Seng added 0.5% to 28,759.27, the Kospi gained 0.5% to 3,187.42, S&P/ASX 200 rose to 7,030.80, the Shanghai Composite index edged 0.1% higher to 3,477.61

Asian shares were higher on Thursday after a broad advance on Wall Street led by technology companies and banks.

Shares advanced in Tokyo, Hong Kong and Sydney but were flat in Shanghai. U.S. futures inched lower.

Japan’s Nikkei 225 index gained 2.1% to 29,099.93. Toshiba Corp. climbed 4.4% amid reports that Bain Capital may be considering an acquisition proposal as an earlier takeover bid by CVC Capital appears not to be progressing.

Hong Kong’s Hang Seng added 0.5% to 28,759.27. In Seoul, the Kospi also gained 0.5% to 3,187.42. Sydney’s S&P/ASX 200 rose to 7,030.80. The Shanghai Composite index edged 0.1% higher to 3,477.61.

Shares advanced in most other markets but dropped in Kuala Lumpur.

On Wednesday, the S&P 500 gained 0.9%, snapping a two-day slide, to end at 4,173.42. The Dow Jones Industrial Average (DJIA) advanced 0.9% to 34,137.31. Both the S&P 500 and Dow hit all-time highs on Friday. The technology-heavy Nasdaq gained 1.2% to 13,950.22.

The Russell 2000 index of smaller company stocks, which has been outpacing the broader market all year, led the way up, jumping 2.3%, to 2,239.63.

Most of the companies in the benchmark index rose, with technology, financial, and health care stocks accounting for a big share of the gains. Tesla, Amazon and other companies that rely directly on consumer spending also advanced. Communication and utilities stocks declined.

Investors are weighing company earnings reports while keeping an eye on bond yields, which eased lower. The yield on the 10-year Treasury slipped to 1.54% from 1.56%.

Much of the market’s focus over the next two weeks will be on individual companies and their quarterly results. Nearly 80 members of the S&P 500 are due to report results this week, as well as one out of every three members of the Dow. On average, analysts expect quarterly profits across the S&P 500 to jump 24% from a year earlier, according to FactSet.

Those companies that meet or beat on revenue and paint a nice picture for the rest of the year are being rewarded, said J.J. Kinahan, chief strategist with TD Ameritrade. When a railroad company is saying we really see improvement for the second half of the year, that’s a really good sign.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Precise Investors. The information provided on Precise Investors is intended for informational purposes only. Precise Investors is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Leave a Reply