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

  • Socks and bonds: Edmonton pals conquer wacky dress sock market

    Economic CTV News
    Two childhood best friends from Edmonton are cashing in on the funky dress sock craze that seems to be sweeping the often bland world of professional menswear. Popular outlandish designs with names like aqua moustaches, surfing sloth, and mint flamingo party have seen Good Luck Sock grow its sales nearly four-fold and double the number of retailers that carry the company’s far-out footwear over the past year. Source
  • Trump's 'Buy American' policy could have major implications for Canada

    Economic CTV News
    WASHINGTON -- Donald Trump has made it clear he wants Buy American rules in the massive infrastructure program he's planning, launching an ardent defence of domestic-purchase requirements that can cause tensions with other countries. Critics of such Buy American provisions say they not only freeze out foreign competition, but hurt Americans too, by driving up the cost of construction, which means taxpayers get fewer roads and bridges for their buck and fewer construction jobs in the long…
  • Ontario steelmaker Stelco seeks court OK for moving ahead with restructuring

    Economic CTV News
    TORONTO -- Southern Ontario steelmaker Stelco is seeking court approval to move forward with its restructuring following an agreement with Bedrock Industries. Ontario Finance Minister Charles Sousa said in a statement Friday that Bedrock's proposal would mean that operations at the Hamilton and Lake Erie facilities would continue and 2,100 jobs would be preserved. Source
  • Cuba, Google strike deal to hike internet speed: sources

    Economic CTV News
    HAVANA -- Google and the Cuban government have struck a deal giving Cubans faster access to the internet giant's content, two people familiar with the agreement said Friday. Eric Schmidt, chairman of Google's parent company, will formally sign the deal Monday morning in Havana, the two people said. Source
  • Ford CEO says Trump threats won't change small car plans

    Economic CTV News
    DETROIT -- Ford Motor Co. is going ahead with plans to move small-car production from the U.S. to Mexico despite President-elect Donald Trump's recent threats to impose tariffs on companies that move work abroad. CEO Mark Fields said Ford's plan to move production of the Ford Focus from Michigan to Mexico will proceed, in part because U.S. Source
  • Major New York markets hit second consecutive day of record highs

    Economic CBC News
    Major New York stock indexes hit a second consecutive day of record highs while the Toronto stock market continued its six-day rise, continuing a post-U.S. election rally. On Wall Street, the Dow Jones industrial average recorded its third consecutive record-breaking day, advancing 142.04 points to 19,756.85. Source
  • Alberta drilling rights auctions deliver lowest payoff in 39 years

    Economic CBC News
    Sales of Crown drilling rights in Alberta have fallen to their lowest levels in 39 years. Statistics posted on the Alberta Energy website this week, following the last auction of 2016, show that oil and gas producers paid $137 million this year for the right to drill oil and gas wells on land where the province owns the mineral rights. Source
  • Trump expected to name a top Goldman exec to economic post

    Economic CTV News
    WASHINGTON -- President-elect Donald Trump is expected to name Gary Cohn, the No. 2 executive at the powerhouse Wall Street firm Goldman Sachs, to a prominent White House economic post. That's according to two people informed of the decision. Source
  • Trump deepens Goldman ties as he builds out economic team

    Economic CTV News
    WASHINGTON -- In the heat of the presidential campaign, Donald Trump accused primary rival Ted Cruz of being controlled by Goldman Sachs because his wife, Heidi, previously worked for the Wall Street giant. He slammed Hillary Clinton for receiving speaking fees from the bank. Source
  • Digital advertising poised for growth next year even as traditional revenues crumble

    Economic CBC News
    Digital advertising will continue to outstrip other media forms this year and next when it comes to bringing in ad dollars, according to a new forecast from media buying company GroupM. Internet advertising is projected to the grow by 18 per cent year-over-year in 2016, and by 15 per cent next year, the New York-based firm said. Source