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

  • U.S. launches national security probe into uranium imports

    Economic CTV News
    WASHINGTON -- The Commerce Department has started an investigation into the impact of uranium imports on U.S. national security, a move that could result in tariffs and add another front to the Trump administration's trade fight. Source
  • Toronto stock market ticks lower, while U.S. markets mixed; Loonie moves down

    Economic CTV News
    TORONTO - Canada's main stock index ticked lower in late-morning trading as the energy and consumer staples sectors lost ground. The S&P/TSX composite index was down 20.72 points to 16,498.52, after 90 minutes of trading. Source
  • U.S. to review uranium imports on national security grounds

    Economic CBC News
    The United States Department of Commerce will launch an investigation into imports of uranium, citing the same concerns about national security that it did before implementing tariffs on steel and aluminum. In a release Wednesday, Commerce Secretary Wilbur Ross says the investigation will cover all aspects of the industry, from mining through enrichment for electricity generation, its role in military defence, and other industrial uses. Source
  • Ford recalls 550,000 vehicles that can roll away unexpectedly

    Economic CBC News
    Ford is recalling about 550,000 cars and SUVs in North America to fix a gearshift problem that could cause the vehicles to roll away unexpectedly. The recall covers certain 2013 through 2016 Fusion sedans and some 2013 and 2014 Escape small SUVs. Source
  • SNC-Lavalin and Holtec form joint venture to decommission nuclear plants

    Economic CTV News
    MONTREAL - SNC-Lavalin Group Inc. and Holtec International have announced a joint venture that will focus on the decommissioning of shuttered nuclear power plants. Terms of the agreement were not immediately available. The company to be named Comprehensive Decommissioning International LLC will be based in Camden, N.J. Source
  • Aecon Group joint venture wins Enbridge Line 3 replacement contract

    Economic CTV News
    TORONTO -- Aecon Group Inc. says its joint venture with Robert B. Somerville Co. Ltd. has won a $282-million contract for a work on Enbridge Inc.'s Line 3 replacement project in Manitoba. The work includes constructing 92.2 kilometres of pipeline in the area of Brandon, Man. Source
  • Elon Musk apologizes for calling rescue diver a pedophile

    Economic CTV News
    BANGKOK -- Tesla and SpaceX CEO Elon Musk has apologized for calling a British diver involved in the Thailand cave rescue a pedophile, saying he spoke in anger but was wrong to do so. There was no immediate public reaction to Musk's tweets from diver Vern Unsworth, who in colorful language in a TV interview had accused the Tesla founder and SpaceX engineers of orchestrating a "PR stunt" by sending a small submarine to help divers rescue the 12 Thai soccer players and their coach from a flooded…
  • Federal Reserve boss tells Congress to get its house in order: Don Pittis

    Economic CBC News
    The world's most powerful central banker, U.S. Fed chair Jerome Powell, says strong inflation and low unemployment mean the country's economic boom is set to continue. But when grilled yesterday by members of the Senate banking committee about the economic risks of trade wars and stagnating wages for the poorest Americans, he returned fire. Source
  • Forget successes, F--kup Nights highlight the business lessons of failure

    Economic CBC News
    A surprising speaker series that's become a global phenomenon is taking root in Canada. The series, provocatively named F--kup Nights (they don't use dashes), focuses on business and entrepreneurship. It involves people sharing stories in front of a crowd of strangers about making mistakes at work. Source
  • Meet the business leaders happy to admit to their mistakes

    Economic CBC News
    The provocatively named speaker series focuses on business and entrepreneurship and involves people sharing stories of making mistakes at work in front of a crowd of strangers. The series was started in Mexico City and has become something of a global phenomenon as events under its name have been held in over 250 cities and 80 countries. Source