Asia-Pacific stocks surged after a rebound on Wall Street and oil hit its highest level in two years as investors reassured by signals the Federal Reserve would continue to support the economic recovery after the coronavirus pandemic .
In early trading in the region on Tuesday, the Japanese Topix rose 2.4% and the Australian S & P / ASX 200 climbed 1.2%. The Chinese CSI 300 index of stocks listed in Shanghai and Shenzhen rose 0.3%.
The moves followed a rebound in US stocks on Monday, with the S&P 500 closing 1.4% higher. U.S. stocks fell last week after the Federal Reserve switched to a more hawkish tone, raising fears that rising interest rates could derail the global economic recovery.
But market sentiment was boosted on Monday by more conciliatory comments from Fed officials, including President Jay Powell, who, in remarks prepared ahead of Congressional testimony on Tuesday, said the central bank “will do all it can. to support the economy for as long as it takes. to complete the recovery ”.
John Williams, chairman of the Federal Reserve Bank of New York, also said on Monday that the US economy was not yet ready for the central bank to start withdrawing its large monetary support.
Jean Boivin, director of the BlackRock Investment Institute, said that “the Fed’s new outlook will not translate into significantly higher key rates any time soon.” He added: “We could see episodes of market volatility. . . but we recommend staying invested and weathering all the turbulence. “
S&P 500 futures rose 0.1% in Asian trading on Tuesday, while those of London’s FTSE 100 rose 0.2%.
Commodity prices, which were battered last week over concerns about the global economic outlook, also rose.
Brent crude, the international benchmark for oil, edged up 0.1% to $ 75 a barrel for the first time since April 2019. Brent is up more than 50% this year, underscoring strong demand ahead of the Opec + meeting next week.
Bitcoin has stabilized after falling sharply in response to a warning from the People’s Bank of China on Monday that state-owned banks and payment platforms nationwide must “investigate and identify” accounts facilitating crypto exchanges. currency and block all these transactions.
The cryptocurrency gained 0.2% in Asian exchanges to $ 32,635 but remains down more than 7% this month.
Bond markets stabilized after yields, which move inversely with prices, soared on Monday as investors abandoned public debt safety and plunged back into equities. The 10-year US Treasury yields fell 0.02 percentage points to 1.474 percent.