Business | Markets
United G20 lifts Far East stocks for fourth day
G20 leaders convinced investors they were united enough to keep a risk-taking rally alive yesterdat, lifting Asian stocks a fourth day, but the US dollar fought back from early losses ahead of the latest US payrolls number due later in the day.
- Reuters
- Published: 23:01 April 3, 2009
Hong Kong: G20 leaders convinced investors they were united enough to keep a risk-taking rally alive yesterdat, lifting Asian stocks a fourth day, but the US dollar fought back from early losses ahead of the latest US payrolls number due later in the day.
The perception of global policy coordination added to a growing investor optimism based on sprouts of economic recovery around the world in the last month. For example, a gauge of Chinese manufacturing in March released on Thursday reflected expansion for the first time since September 2008.
Major European stocks were expected to open slightly lower, according to financial bookmakers, as caution reigned ahead of the latest US payrolls figure due later on Friday.
Still, views on the medium-term outlook improved markedly after the Group of 20 pledged $1.1 trillion in additional funds for the International Monetary Fund and to support global trade finance.
"We expected a lot of discord between the US and UK and France and Germany with China poking its nose in as well but they seem to come out of the event as one connected group, seemingly on the same page," said Dwyfor Evans, currency strategist with State Street Global Markets in Hong Kong.
"It implies that there is policy coordination and not policy discord," he said.
Institutional investors have been selling US dollars and yen - which have been associated with safety and liquidity - and buying emerging market and commodity-related currencies for the last several weeks, Evans said, citing State Street's capital flows data.
Global stock markets have been rising at a torrid pace for nearly a month now, particularly in Asia, and some dealers were talking about the need to pause and lock in some of the gains. Indeed, US stock market futures were already pointing to a slightly lower open later in the day.
The MSCI index of Asia Pacific stocks outside Japan edged up 0.7 per cent and stood more than 20 per cent higher since late February.
Japan's Nikkei share average was up 0.3 per cent, after being higher for most of the session. Automaker stocks were big gainers for a third day, with shares of Toyota Motor Corp up 7 per cent following more evidence overnight the global car market collapse could be nearing an end.
Car sales in Germany, Europe's largest market, surged 40 per cent in March, mainly due to government incentives to encourage drivers to trade old cars for more fuel-efficient models.
Hong Kong's Hang Seng index was up slightly near a three-month high, after a 7 per cent surge on Thursday. Trading volume climbed as the month-long rally sucked in more market participants - a sign the current rally may have legs.
Rebounding commodity prices fed into a 4 per cent pop in shares of Australian miners BHP Billiton and Rio Tinto. The benchmark S&P/ASK 200 index climbed 1.5 per cent.
Share this article
More from Markets
More from Business
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Shaikh Mohammad reaffirms UAE unity
Vice-President quashes talk of discord and reassures investors on the strength of Dubai's economy
-
Pizzazz on the palm: A Nikki Bisiker project
Bright, bold and ultra glam are the top notes of this apartment in The Palm Jumeirah's beautiful marina
-
flydubai starts service to Sudanese capital
Dubai's first low cost airline, celebrated its eighth inaugural flight in less than six months
