Asian markets rally as earnings turn away from inflation fears
HONG KONG: Asian markets rose on Tuesday, prolonging a Wall Street rally, with optimism over corporate earnings providing respite from long-standing concerns about inflation, central bank tightening and signs of a slowdown economic recovery.
A slew of corporate earnings reports beating expectations over the past week has given a much-needed boost to investors who have waited anxiously for much of the year for CFOs to start capitalizing on extensive cash support in place at the start. of the pandemic.
The positive readings have allayed concerns about the impact on corporate earnings of soaring inflation, a looming energy crisis, and expectations that the era of cheap money will soon be over. its end.
“We’re going to get a lot of information on whether margins are being squeezed by these shortages and higher prices, and whether wages continue to rise,” JoAnne Feeney, of Advisors Capital Management, said on Bloomberg Television.
The S&P 500 and Nasdaq on Wall Street finished in positive territory, and Asia followed suit.
Hong Kong and Taipei gained more than one percent each, while Shanghai, Tokyo, Sydney, Seoul, Singapore, Wellington, Manila and Jakarta also recorded strong gains.
Investors rejected reports that North Korea fired an unidentified projectile into the sea.
As attention turns largely to the release of earnings reports, traders are also awaiting comment from the Federal Reserve as it prepares to scale back its massive bond buying program in preparation for the surge in prices. price.
The bank has already signaled a start typing before the end of the year, but observers are now anticipating the possibility of an interest rate hike in mid-2022, much earlier than initially expected.
“The world is watching interest rates more closely than it has been in some time,” said Chris Weston, of Pepperstone Financial, adding that it was “impressive how resilient the markets are and how calm in the face of the rate revision “.
Analysts said Hong Kong was enjoying a break in sales – it has lost more than 5% this year – as China shows signs of slowing its crackdown on private companies such as technology companies listed in the United States. city.
They added that concerns about the country’s growth, which has been hampered by a regulatory campaign against the real estate sector, could also be a factor for leaders to pull back from further measures.
Oil markets were flat as traders took a break after a recent price hike that was fueled by weak supplies and expectations of increased demand during the winter in the northern hemisphere.
A surge in the cost of natural gas has also pushed energy suppliers to turn to crude in some cases, adding upward pressure on the product, while OPEC’s decision not to increase production. further complicated the problem.
Bitcoin was hovering around $ 62,000, less than $ 3,000 below its April record, with new security to trade the cryptocurrency which is expected to start trading on the New York Stock Exchange on Tuesday.
A slew of corporate earnings reports beating expectations over the past week has given a much-needed boost to investors who have waited anxiously for much of the year for CFOs to start capitalizing on extensive cash support in place at the start. of the pandemic.
The positive readings have allayed concerns about the impact on corporate earnings of soaring inflation, a looming energy crisis, and expectations that the era of cheap money will soon be over. its end.
“We’re going to get a lot of information on whether margins are being squeezed by these shortages and higher prices, and whether wages continue to rise,” JoAnne Feeney, of Advisors Capital Management, said on Bloomberg Television.
The S&P 500 and Nasdaq on Wall Street finished in positive territory, and Asia followed suit.
Hong Kong and Taipei gained more than one percent each, while Shanghai, Tokyo, Sydney, Seoul, Singapore, Wellington, Manila and Jakarta also recorded strong gains.
Investors rejected reports that North Korea fired an unidentified projectile into the sea.
As attention turns largely to the release of earnings reports, traders are also awaiting comment from the Federal Reserve as it prepares to scale back its massive bond buying program in preparation for the surge in prices. price.
The bank has already signaled a start typing before the end of the year, but observers are now anticipating the possibility of an interest rate hike in mid-2022, much earlier than initially expected.
“The world is watching interest rates more closely than it has been in some time,” said Chris Weston, of Pepperstone Financial, adding that it was “impressive how resilient the markets are and how calm in the face of the rate revision “.
Analysts said Hong Kong was enjoying a break in sales – it has lost more than 5% this year – as China shows signs of slowing its crackdown on private companies such as technology companies listed in the United States. city.
They added that concerns about the country’s growth, which has been hampered by a regulatory campaign against the real estate sector, could also be a factor for leaders to pull back from further measures.
Oil markets were flat as traders took a break after a recent price hike that was fueled by weak supplies and expectations of increased demand during the winter in the northern hemisphere.
A surge in the cost of natural gas has also pushed energy suppliers to turn to crude in some cases, adding upward pressure on the product, while OPEC’s decision not to increase production. further complicated the problem.
Bitcoin was hovering around $ 62,000, less than $ 3,000 below its April record, with new security to trade the cryptocurrency which is expected to start trading on the New York Stock Exchange on Tuesday.