Hong Kong’s Hang Seng soared more than 6%, leading Asian market gains
Wall Street stocks rallied for the second session in a row on Tuesday as risk sentiment improved further while bond yields continued to fall. The 10-year Treasury yield traded at about 3.63%, down from more than 4% last week. The Dow Jones Industrial Average rose 2.8%, the S&P 500 added nearly 3.1%, and the Nasdaq Composite was up 3.3%. In individual stocks, shares of Twitter jumped more than 22% after Elon Musk agreed to purchase the social media giant for the price of $54.20 a share.
Asian equities advanced on Wednesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan rallying 2.3%. The benchmark is up 1.4% so far this month. Leading regional market gains, Hong Kong’s Hang Seng soared more than 6% while New Zealand’s benchmark rose 0.7% percent after the RBNZ hiked its benchmark interest rate to 3.5%, as expected. Mainland Chinese markets remain closed for holidays.
In Europe, stocks opened mixed-to-lower after yesterday’s rally witnessed on the back of a pullback in bond yields. As such, risk demand seems to be abating gradually following a spectacular bounce at the start of the week, the month, and the quarter. On the data front, French industrial production came in at 2.4% in September versus contraction by 1.6% in the previous month. Meanwhile, the Ifo economic institute said that an increasing number of German companies are planning to raise their prices.
In currencies, the US dollar bounced from the 110.00 zone and is trying to base at the lows of the week so far. However, the DXY lacks recovery momentum to stage a solid bounce at this stage. Later in the week, the greenback could derive support from the US employment report due on Friday. Should the figures exceed expectations, the dollar may rally across the market. The EURUSD pair has settled just below parity, staying in the offensive after a decisive break above the 20-DMA.
