⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Asia stocks rise on talk of U.S., European stimulus; Nikkei up 0.72%

Published 07/30/2012, 11:03 PM
Updated 07/30/2012, 11:06 PM
UK100
-
FCHI
-
DJI
-
DE40
-
JP225
-
HK50
-
AQA
-
0012
-
0291
-
LINC
-
BTU
-
Investing.com - Asian rose Tuesday as sentiments continued to build that the U.S. Federal Reserve and the European Central Bank may hint at a need to stimulate their respective economies, which would weaken the dollar and the euro and send global stock prices rising.

During Asian trading on Tuesday, Hong Kong's Hang Seng Index was up 1.03%, Australia's S&P/ASX200 was up 0.86%, while Japan’s Nikkei 225 Index was up 0.72%.

The Federal Reserve will announce its latest decision regarding interest rates on Wednesday, and markets are hoping for some hints that the U.S. central bank will jolt the economy with stimulus measures, which are bullish for stocks.

ECB President Mario Draghi, meanwhile, said last week he would do whatever is necessary to defend the eurozone, though some feel Europe's monetary authority will stop short of outright bond purchases from banks via quantitative easing, tool used twice by the Federal Reserve.

The ECB has purchased sovereign debt in the past but withdrew money from circulation to buy those assets, whereas quantitative easing arguably prints money out of thin air used to buy assets from banks to pump the economy full of liquidity.

Spain, meanwhile, announced its economy contracted 0.4% on year in the second quarter, meaning the country remains firmly locked in recession, though markets had expected such a reading.

The European Commission’s index of economic sentiment across the eurozone dropped to 87.9 in July compared with 89.9 in June.

Analysts were expecting a reading of 88.7.

Meanwhile in Japan, the country's unemployment rate fell to 4.3% in June from 4.4% percent in May, the government reported.

Economists were calling for a 4.4% reading.

Household spending, however, grew 1.6% on year in June, well below market calls for 2.9% growth and well beneath May's 4.0% reading.

In Hong Kong, top gainers included Hang Lung Properties, up 3.50%, China Resources Power, up 2.82%, and Henderson Land, up 2.30%.

In Australia, top gainers included Linc Energy, up 8.33%, Aquila Resources, up 6.44%, and Bathurst Resources, up 5.45%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.69%, while Germany's DAX 30 futures signaled a gain of 0.44%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.43%.

Dow Jones Industrial Average futures were up 0.29% while the S&P 500 futures were up 0.30%.

All eyes will remained focused on the Federal Reserve and the European Central Bank and their respective statements on monetary policy.
 

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.