Asian shares climb on strong US corporate earnings, data

SINGAPORE — Asian markets rose on Wednesday as robust U.S. corporate earnings and encouraging data assuaged worries about softening global growth.

KEEPING SCORE: Japan's benchmark Nikkei 225 jumped 1.3 percent to 22,842.12. The Kospi in South Korea advanced 1.1 percent to 2,169.20. The Shanghai Composite rose 0.1 percent to 2,548.88. Australia's S&P/ASX 200 gained 1.2 percent to 5,938.67. Shares rose in Taiwan, Indonesia and Singapore. Markets in Hong Kong were closed for a holiday.

WALL STREET: U.S. stocks bounced back from a series of losses, racking up their biggest gain in six months on Tuesday. The S&P 500 index rallied 2.1 percent, its largest jump since March 26, to 2,809.92. But the index was still 4.1 percent lower than its record high in late September. The Dow Jones Industrial Average advanced 2.2 percent to 25,298.42, and the Nasdaq composite gained 2.9 percent to 7,645.49. The Russell 2000 index of smaller-company stocks climbed 2.8 percent to 1,596.84.

U.S. EARNINGS: Major financial and health care companies reported strong profits for the third quarter on Tuesday, surpassing market expectations. UnitedHealth, the country's biggest health insurer, exceeded analyst's projections for the quarter and raised its projections for the year. Its stock climbed 4.7 percent to $272.57. Investment banks Morgan Stanley and Goldman Sachs did well too, sending their shares on a rally. Sentiment was also lifted by encouraging data. The Labor Department said U.S. employers posted the most jobs in two decades and hiring was at a record high. The Federal Reserve reported that output by U.S. factories, mines and utilities rose in September despite Hurricane Florence. But an industrial production report that suggested inflation held steady convinced investors that Fed will not pick up the pace of interest rate hikes, analysts said.

ANALYST'S TAKE: "Asia Pacific markets have kickstarted the day in synchronized gains owing to the relief in the U.S., sustaining the trend in taking after overnight leads," Jingyi Pan of IG said in a commentary.

UBER IPO: According to a media report, Uber has received proposals from investment banks Morgan Stanley and Goldman Sachs that valued the ride hailing company at as much as $120 billion. The Wall Street Journal said Uber may launch an initial public offering early next year, citing people familiar with the matter. Apart from scandals including workplace harassment, Uber faces intensifying competition and sold its Southeast Asian operations to rival Grab in March.

ENERGY: U.S. benchmark crude added 11 cents to $72.03 a barrel. The contract gained 0.2 percent to close at $71.92 per barrel in New York. Brent crude, the international standard, rose 8 cents to $81.49 a barrel. It added 0.8 percent to $81.41 per barrel in London.

CURRENCIES: The dollar strengthened to 112.39 yen from 112.28 yen late Tuesday. The euro fell to $1.1563 from $1.1575.

Lululemon posts strong results, CEO cites holiday...

Dec 6, 2017

Lululemon posts 3Q profit, results beat Wall Street estimates

Garber talks MLS expansion, relocation in annual...

Dec 8, 2017

MLS Commissioner Don Garber says it's 'conceivable' new expansion team could join league before...

Barrick Gold founder Peter Munk dies in Toronto...

Mar 28, 2018

Peter Munk, a Canadian immigrant who founded Barrick Gold and turned it into the world's largest...

US singled out by G7 allies over steel and...

Jun 3, 2018

The United States is being singled out by some of its allies over the imposition of tariffs that...

Trump's tweets slam Canada and Trudeau anew from...

Jun 11, 2018

Trump takes more swipes at Canada and its prime minister over trade issues as he settles in for a...

Financial Markets

Market Sanctum is one of the world’s leading news sources for the currency trading community. Our analysts report on the latest changes in the current market, providing in-depth analysis.

Contact us: sales[at]marketsanctum.com