Precise Investors

Friday, December 2, 2022
Stocks & Shares

Asian stocks climb as US markets surge


U.S. equity futures rose after broad-based gains pushed the S&P 500 to a historic close

Stocks in Asia jumped Friday after stronger risk appetite swept their U.S. peers to an all-time high on the passage of President Joe Biden’s $1.9 trillion pandemic relief bill.

MSCI Inc.’s Asia-Pacific gauge gained, with South Korea outperforming and Japanese shares fluctuating. U.S. equity futures rose after broad-based gains pushed the S&P 500 to a historic close on Thursday. The Nasdaq 100 bounced back over 2% from losses that had pulled it 11% below its February record. Korean e-commerce giant Coupang Inc. jumped 41% in its equity-market debut.

Investors will be eyeing China’s open, after the Biden administration informed some suppliers to Huawei Technologies Co. of tighter conditions on previously approved export licenses. Futures pointed higher in Hong Kong.

Key bond sales went smoothly, easing worries about another possible spike in yields. The 10-year Treasury benchmark pared a rise after an auction of 30-year notes. Verizon Communications Inc. saw surging demand for its $25 billion debt sale.

The administration has slipped a little bit of extra fuel to the equity markets with their bill. It’s going to be rocket fuel, said Chris Gaffney, president of world markets at TIAA Bank. We’re headed to new highs because of all that stimulus money that’s being put out there and it’s more broad-based than the first couple of stimulus programs.

Risk assets have found fresh momentum with the U.S. poised for economic growth not seen since the 1980s. Worries that an overheating economy could deliver excessive inflation eased after the latest consumer prices reading, turning attention to Friday’s producer prices and inflation expectations figures.

The European Central Bank (ECB) contributed to the sentiment boost with a pledge to step up the pace of bond purchases to keep rising yields from derailing the region’s economic recovery. German 10-year bond yields dropped, while the Stoxx 600 Index advanced.

The risk-on mood also benefited oil, which traded nearly $66 a barrel, and Bitcoin jumped within reach of an another all-time high.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply