Asian stocks rise on stimulus hopes

HONG KONG - Asian stocks rose for a second day Tuesday as a strengthening yuan and hopes for more central bank stimulus gave investors relief from the mauling that markets have suffered so far this year.

See Full Article

KEEPING SCORE: Japan's benchmark Nikkei 225 index added 0.2 per cent to 16,054.43 after soaring 7.2 per cent the day before, which was its biggest daily gain since September. South Korea's Kospi rose 1.4 per cent to 1,887.05 and Hong Kong's Hang Seng advanced 1.3 per cent to 19,159.76. The Shanghai Composite Index in mainland China gained 3 per cent to 2,827.84 and Australia's S&P/ASX 200 was up 1.4 per cent to 4,810.00. Benchmarks in Taiwan and most of Southeast Asia also rose.

STIMULUS HOPES: With U.S. markets closed for a holiday and therefore providing no guidance in either direction, the global stock rally extended into a second day. Investor sentiment remained positive that central banks would continue to ease monetary policy thanks to comments from the head of the European Central Bank. With the ECB set to discuss policy measures on March 10, Mario Draghi told the European Parliament on Monday that the bank has a range of instruments it can deploy if it decides more stimulus is needed. Earlier, a disappointing report on Japanese economic growth also raised hopes for more policy easing.

RENMINBI RELIEF: China's strengthening currency also helped boost sentiment. The yuan hovered near its strongest level so far this year a day after the central bank guided the currency, also known as the renminbi, sharply higher. Meanwhile, new yuan loans jumped 71 per cent in January, the official Xinhua news agency reported Tuesday, suggesting solid demand in the world's No. 2 economy.

ANALYST'S TAKE: "Since the start of January everything went south and we really needed some positive news," said Jackson Wong, associate director at Huarong International Securities. "Factors that were affecting the markets negatively have turned positive now: the yen is weaker, the renminbi is stronger, global markets like the U.S. are stabilizing. All the negative catalysts from January are turning better."

ENERGY: Oil futures bounced higher, with benchmark U.S. crude rising $1.28, or 4.4 per cent, to $30.72 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $3.23 to settle at $29.44 a barrel on Friday. Brent crude, a benchmark for international oils, added $1.38 to $34.77 a barrel in London.

EUROPE JUMP: Britain's FTSE 100 closed 2 per cent higher on Monday at 5,824.28 and Germany's DAX gained 2.7 per cent to 9,206.84. France's CAC 40 rose 3 per cent to close at 4,115.25.

CURRENCIES: The dollar strengthened to 114.59 yen from 114.54 yen in Monday's trading. The euro slipped to $1.1155 from $1.1167.



Advertisements

Latest Economic News

  • Calgary and Saint John mayors urge NEB to reverse Energy East pipeline ruling

    Economic CTV News
    CALGARY -- Mayors from both ends of the proposed Energy East pipeline are calling for the National Energy Board to reverse its requirement that upstream and downstream emissions be included in its review of the $15.7-billion conduit. Source
  • Lawsuit tossed against Little Caesars over non-halal pepperoni

    Economic CTV News
    DETROIT -- A judge has rejected a lawsuit against a pizza franchise, alleging it sold pork as "halal pepperoni" at one of its locations in a Detroit suburb. The Detroit Free Press reports that on Thursday the Wayne County judge dismissed the lawsuit filed by Dearborn resident Mohamad Bazzi against Little Caesars Pizza. Source
  • Walmart testing service that delivers right into customers' fridges

    Economic CTV News
    NEW YORK -- Would you be OK with letting a stranger into your house for the sake of convenience? Walmart is testing the idea with a new service that lets a delivery person walk into your home when you're not there to drop off packages or put groceries in the fridge. Source
  • Quebec renews Uber's permit for another year with tighter rules

    Economic CTV News
    Quebec's transportation minister is renewing a deal allowing ride-hailing company Uber to operate for another year in the province. Laurent Lessard says the deal extension tightens the rules under which the San Francisco-based company will be permitted to continue offering its services to Quebecers. Source
  • Canadian firm applies to build $10-billion Jordan Cove LNG project in Oregon

    Economic CTV News
    CALGARY -- The Canadian company whose proposal to build an LNG export terminal in Oregon was derailed by U.S. regulators last year has resubmitted its application for a bigger, more expensive project. Calgary-based Veresen Inc. Source
  • OPEC says winning battle to end oil glut

    Economic CBC News
    OPEC and other oil producers are clearing a glut that has weighed on crude prices for three years and may wait until January before deciding whether to extend their output curbs beyond the first quarter of 2018, ministers said on Friday. Source
  • Mastermind Toys ramps up expansion even as Toys "R" Us flounders

    Economic CBC News
    Jon Levy's favourite playthings as a Toronto child growing up in the 1960s and 1970s included Lego blocks and fort-building kits — classics that still fly off the shelves of his Mastermind Toy stores today. "My true innovation in this business is being able to get inside my inner kid and determine whether it is something truly fun to play with," said Levy, the chain's co-founder, CEO and chief toy merchant. Source
  • Ontario signs formal agreement to join Quebec-California carbon market in 2018

    Economic CTV News
    QUEBEC -- Ontario has formally signed an agreement to join Quebec and California's cap-and-trade system on Jan. 1, 2018. The province has been running its own system this year aimed at lowering greenhouse gas emissions, with three sell-out auctions in a row. Source
  • Angry French famer block Champs-Elysees in pesticide protest

    Economic CTV News
    PARIS -- Angry French farmers are blocking Paris' famed Champs-Elysees in a protest against the government's agricultural policy. Sections of the normally pristine avenue were smothered in straw as about a hundred demonstrators brandished placards such as "Macron is killing farmers" and stopped morning traffic from passing Friday along the busy artery. Source
  • Angry French farmers block Champs-Elysees in pesticide protest

    Economic CTV News
    PARIS -- Angry French farmers are blocking Paris' famed Champs-Elysees in a protest against the government's agricultural policy. Sections of the normally pristine avenue were smothered in straw as about a hundred demonstrators brandished placards such as "Macron is killing farmers" and stopped morning traffic from passing Friday along the busy artery. Source