Chinese markets are back from the holiday rally, tracking Wall Street

BEIJING (AFP) – Asian stocks followed Wall Street higher on Friday after US lawmakers temporarily averted a potential government debt default while investors await US job numbers.

Market standards have advanced in Shanghai, Tokyo and Sydney.

Congress temporarily set aside the debt row on Thursday to extend the government’s borrowing ability through December. Experts say a default would have set back the recovery from the coronavirus pandemic.

Venkateswaran Lavanya of Mizuho Bank said in a report that the deal brought “joy to the markets”. However, Lavaña warned that “concerns about US funding of her government have not dissipated.”

Also on Friday, investors were watching the Labor Department’s employment data that they hope will show US employers hired more workers in September. Federal Reserve officials say employment levels are a potential factor when the US central bank begins to roll back economic stimulus.

Shanghai Composite Index
SHCOMP,
+ 0.49%

It rose 0.5% to 3,587.46 as Chinese markets reopened after a five-day holiday. China CSI 300 Index
000300,
+ 1.18%

It rose 1% to 4,917. The Nikkei 225
I,
+ 1.61%

In Tokyo it jumped 2.2% to 28275.52 and Hang Seng
HSI,
+ 0.03%

In Hong Kong it fell 0.2% to 24,663.

Data showed that a measure of China’s service sector rebounded strongly in September after contracting in August.

Cosby
180721,
-0.14%

In Seoul it fell 0.1% to 2,955 and the ASX-S&P 200
XJO,
+ 0.87%

It added 0.7% to 7307. The New Zealand and Southeast Asian markets advanced.

On Wall Street, the benchmark S&P 500 Index
SPX,
+ 0.83%

It rose 0.8% to 4,399.76, its third straight daily gain. The index earlier swung between gains and losses of more than 1% for four days on concern about the debt fight in Washington.

Dow Jones Industrial Average
DJIA,
+ 0.98%

Gain 1% to 34754.94. Nasdaq
COMP,
+ 1.05%

He added 152.10 points to 14654.02.

On Thursday, the Labor Department reported that the number of people filing for unemployment fell last week.

Investors are watching employment levels as an indication of when the Federal Reserve will reduce its monthly bond purchases and other forms of support for the economy as it recovers from the coronavirus pandemic.

Federal Reserve officials have responded to rising inflation by saying they want to make sure there is a recovery before withdrawing support. Stronger hiring could add to the pressure on prices to rise faster, which investors fear could prompt the Fed and other central banks to undo the stimulus that has boosted stock prices.

In energy markets, US benchmark crude
CL00,
+ 1.52%

It rose $1.11 to $79.41 a barrel in electronic trading on the New York Mercantile Exchange. The contract increased 87 cents on Thursday to $78.30. Brent crude
BRN00,
+ 1.38%
And
The global oil price basis rose $1.06 a barrel to $83.01 in London. It added 87 cents in the previous session to $81.95.

dollar
USD/JPY,
+ 0.25%

It rose to 111.84 yen from 111.63 yen on Thursday. euro
EURUSD,
-0.03%

advance to $1.1554 from $1.1550.

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