Things are looking better and promising as Asian shares recorded two-month highs. A lot of positive economic data from the United States to Australia, as well as the quick gains in oil prices proved that there should not be any worries of a global economic shutdown.
The European stock markets, driven by Asia, are opening higher with experts speculating FTSE 100 .FTSE of Britain will open about 0.7 to 0.8% higher. The DAX .GDAXI of Germany and CAC .FCHI of France are also expected to open higher with 1% and 0.8 to 1% respectively.
Other stock markets in the region, led by Hong Kong and Japan, were in the black, with China announcing that it would go ahead to cut bank reserve requirements as well as structural reforms. Japan’s Nikkei .N225 recorded 4% gains, while Seng Index .HSI of Hong Kong recorded 2.9 percent gains.
The MSCI’s broadest index in Asia-Pacific shares that are outside Japan also rose, reaching 2.5%. It recorded the highest levels from January 7. Credit Suisse’s director in the field of Japan Equity shares, Stefan Worrall, says that some of the confidence that had been lost is finally getting restored. He continues and points out that there have been immense economic data witnessed from the United States, which beats all the expectations.
The ISM (Institute for Supply Management) index of the U.S. recorded high gains last month, something that wasn’t expected. It continued producing impressive results for two consecutive months, appearing to have put an end to its decline that started in late 2014.
Since 2007, the spending of the U.S. construction also rose to its highest level, while strong GDP data from Canada and Australia helped. It lifted the U.S. S&P 500 Index .SPX to 2.9%, reaching an eight-week high and recording 1,978.35.
On Tuesday, the dollar rose against the yen to reach 114.05, while the Euro recorded a one-month low at $1.08340. In the oil sector, Brent crude futures recorded an eight-week gain of $37.25 for every barrel, which is up more than 37.5%, or $10 from a low of $27.10 that was recorded in January.
With the data collected by the close of Tuesday, it is evident that Asia stocks continue to rise. This has restored the appetite of investors, calming their fears about an economic shutdown.