Asian shares bounce as U.S. falls to its lowest level in a year

HONG KONG, Oct 19 Reuters - Asian shares bounced on Tuesday, led by technology names across the region and as Chinese markets clawed back ground lost after disappointing economic data, while improved investor confidence weighed on the safe-haven dollar.

The MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.05%. It is up about 6% since its 12 month low which was hit on 8 Oct., largely in line with a strong recovery in shares after a new opening of the U.S. earnings season.

Futures have also rose a little, suggesting a positive opening to the European session. Both FTSE futures and euro market futures rose 0.13%, while the S&P 500 index increased 0.14%.

Technology stocks were at the forefront of today's gains in India and other countries in Asia, in line with moves in Asia. The Hong Kong benchmark was increased to 1.26% with the tech sub index climbing 2.4%.

Analysts said a Wall Street rally, overnight which saw Apple Facebook and Microsoft all rising was behind the Asian tech share's strong day.

Chinese shares rose also, climbing losses a day after China reported the weakest economic growth in a year.

Chinese Blue Chips are 1% higher and the Shanghai Composite Index was 0.74% higher.

Although China s economic data are disappointing, the equity market is unevenly supported by certain sectors. Insurance and technology shares rebounded from the previous decline, while health care and energy gains with renewed low COVID outbreak and high coal prices, said Gary Ng, a senior economist in Natixis in Hong Kong.

The improvement in internal risk sentiment has also helped, which is shown in the weaker dollar index. The dollar lost 0.28% against a basket of its major peers, falling to its lowest level in October.

Sterling the Australian dollar and the New Zealand dollar all hit month highs against the greenback in the Asian session, while the Euro hit a two-week top.

However, analysts at CBA said they thought the dollar would likely resume its uptrend as long-term inflation pressures building in the U.S. and as a result we expect U.S. Fed Funds futures to begin pricing a more aggressive rate hike cycle. The U.S. Treasury yields were also higher in Asia, especially in the middle of the curve.

Oil prices recouped earlier losses and rose on Tuesday, also supported as risk appetite returned to markets.

Brent crude rose 0.28% to $84.56 a barrel. U.S. crude gained 0.44% to $82.8 a barrel.

Gold also gained on lower rates with the spot price climbing 0.6% to $1,775. 2 an ounce, though the metal remained within its recently published range.