Asian Stocks Extend Rally on US Earnings Boost
Asian shares extended gains on Tuesday, buoyed by upbeat US earnings and indications that tensions between Washington and Beijing were easing. A regional stock gauge topped its record close as most major Asian benchmarks advanced.
US Earnings Season: A Boost to Global Markets
The strong start to the US earnings season has helped temper worries over the US government shutdown, while hopes of progress in US-China trade talks lifted sentiment. About 85% of companies have beaten profit estimates so far, logging the S&P 500’s biggest two-day gain since June.
President Donald Trump reiterated his threat to follow through on a tariff hike on Chinese goods “if there isn’t a deal” by November 1, but said he plans to meet President Xi Jinping next week. This development has eased concerns over the ongoing trade tensions between the two nations.
Impact on Indian Markets
The Indian stock market, including the Nifty today and Sensex news, is closely watching the developments in the US and Asian markets. The Indian stock market is expected to be influenced by the global trends, and investors are advised to stay updated on the Q1 results and other market-moving news.
Expert Insights
According to Nick Twidale, chief market analyst at AT Global Markets in Sydney, “The strong start to the week on Wall Street has helped Asian markets to open higher today. A softening in trade concerns has also helped overall sentiment, with investors taking a glass 75% full look at the market at the moment.”
Rick Gardner at RGA Investments noted that the data may take on greater importance due to the government shutdown-driven data drought. He still sees a Fed cut in October and noted that a key test will be Big Tech earnings, with investors looking for clarity on how spending on artificial intelligence is leading to profitability.
Key Market Moves
- S&P 500 futures were little changed as of 10:32 a.m. Tokyo time
- Nikkei 225 futures (OSE) rose 1.1%
- Japan’s Topix rose 0.6%
- Australia’s S&P/ASX 200 rose 0.9%
- Hong Kong’s Hang Seng rose 1.1%
- The Shanghai Composite rose 0.3%
- Euro Stoxx 50 futures rose 0.2%
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1648
- The Japanese yen was little changed at 150.72 per dollar
- The offshore yuan was little changed at 7.1208 per dollar
- The Australian dollar was little changed at $0.6516
- Bitcoin fell 0.8% to $110,281.06
- Ether fell 1% to $3,961.26
- The yield on 10-year Treasuries was little changed at 3.98%
- Japan’s 10-year yield declined one basis point to 1.660%
- Australia’s 10-year yield declined three basis points to 4.12%
- West Texas Intermediate crude fell 0.5% to $57.22 a barrel
- Spot gold fell 0.2% to $4,347.44 an ounce
Conclusion
In conclusion, the Asian stock market rally on the back of US earnings boost is a positive sign for Indian investors. However, it is essential to keep a close eye on the developments in the US-China trade talks and the upcoming Q1 results season. Investors can stay updated on the Nifty today and Sensex news to make informed investment decisions.
