Asian stocks grew Monday. It was after Wall Street turned its fifth straight weekly gain and manufacturing growth in China continued steadily.
Benchmarks progressed in Shanghai, Tokyo, Hong Kong, and Seoul.
U.S. stocks have benefited from the announcement by Federal Reserve Chairman Jerome Powell of a shift in policy. It could hold interest rates down for a long time. The move, called “normal targeting of inflation,” may mean that even if inflation reaches the 2 percent target of the Fed, rates remain low.
“The market continues to run hot after U.S. Fed Chair Powell tipped his hat to a lengthy period of easy Fed policy,” said Stephen Innes of AxiCorp in a report.
Asian Stocks Market Rose
The Shanghai Composite Index rose 1.1% to 3,441.31 after the Chinese statistics bureau. And then, an industry group reported a survey showed manufacturing grew in August at about the same rate as the previous month.
The Nikkei 225 in Tokyo added 1.9% to 23,329.47. It was rebounding after Prime Minister Shinzo Abe’s announcement that he was resigning for health reasons triggered heavy selling on Friday.
Hong Kong’s Hang Seng advanced 1.4% to 25,780.44. The Kospi in Seoul was little-changed at 2,354.11.
Australia’s S&P-ASX 200 was 0.2% higher at 6,083.70. New Zealand and Jakarta retreated while Singapore gained.
Global Stock Markets Recovered the Losses
Global stock markets recovered much of the losses this year amid growing numbers of coronavirus infections in the United States, Brazil and a few other countries.
In spite of the pandemic, Wall Street ‘s benchmark S&P 500 index is at a record high, powered by huge gains for technology stocks investors expect to do well. But the bulk of stocks on the index are still down.
From Friday’s 105.55 the dollar went down to 105.46 yen. The euro slipped from $1.1918 down to $1.1913.
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