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Shares across Asia-Pacific jumped after a rebound on Wall Street and oil rose to its highest level in two years as investors calmed down with signals that the Federal Reserve would continue to support to the economic recovery from the coronavirus pandemic.
On Tuesday afternoon, Asian trade, the Japanese Topix rose 3.1% and the Australian S & P / ASX 200 rose 1.8%. India’s benchmark Sensex index rose 0.8 percent to a record, while China’s CSI 300 index of shares listed in Shanghai and Shenzhen rose 0.5 percent .
The movements continued to rebound from US stocks on Monday, with the S&P 500 closing 1.4%. US shares fell last week after the Federal Reserve pivoted toward a more hawkish tone, fear arose that interest rate hikes could derail the global economic recovery.
But market sentiment gained momentum Monday from more open comments from Fed officials, including President Jay Powell, who in statements prepared before Tuesday’s Congressional testimony said the central bank “will do its best to support the economy for the time it takes to complete the recovery ”.
John Williams, president of the Federal Reserve Bank of New York, he also said that the U.S. economy was not yet ready for the central bank to begin withdrawing its strong monetary support.
Jean Boivin, head of the BlackRock Investment Institute, said that “the Fed’s new prospects will not translate into significantly higher policy rates soon.”
“We may see episodes of market volatility. . . but we advocate keeping investing and looking at any turbulence, ”Boivin added.
S&P 500 futures rose 0.2 percent during trading in Asia on Tuesday, while London’s FTSE 100 futures rose 0.3 percent.
Commodity prices, which plummeted last week due to concerns about the global economic outlook, also rose. Brent crude, the international benchmark for oil, rose 0.3% to $ 75.14 a barrel, surpassing $ 75 for the first time since April 2019.
Brent is more than 50% this year, highlighting the strong demand ahead of next week’s Opec + meeting.
Bitcoin stabilized after falling sharply in response to a warning of the People’s Bank of China on Monday that state-owned banks and payment platforms should investigate and identify accounts that facilitate cryptocurrency trading and block all such transactions.
The cryptocurrency rose 1% to $ 32,881 on Tuesday, but remains down 6.5% this month.
Bond markets remained stable after yields, which move inversely to prices, soared on Monday as investors abandoned public debt security and returned to equities. Ten-year US Treasury yields remained at 1.492% in Asian trade.
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