Asian Markets Rise, Led by Japan's Nikkei 225
Asian shares rose on Wednesday, led by a 2% gain in Japan's Nikkei 225, following a second consecutive day of rallies in U.S. stocks. This provided some relief after a rough April for global markets.
Australia's S&P/ASX 200 index rose 0.3% after the release of a fifth consecutive quarter of decelerating inflation. In South Korea, the Kospi added 1.9%, led by a 3.8% gain in Samsung Electronics. Hong Kong's Hang Seng and Hang Seng Tech Index gained 1.3% and 2.7%, respectively.
U.S. Stocks Rally, Fueled by Weaker Business Activity Report
On Tuesday, the S&P 500 climbed 1.2%, the Dow Jones Industrial Average rose 0.7%, and the Nasdaq composite jumped 1.6%. A weaker-than-expected report on U.S. business activity helped support the market, suggesting a possible slowdown in growth that could allow the Fed to cut interest rates.
Earnings Reports Dictate Trading
A flood of earnings reports also dictated much of trading, with companies like GE Aerospace, Kimberly-Clark, General Motors, and Danaher exceeding analysts' expectations. Nucor, however, fell 8.9% after missing profit and revenue forecasts.
Skeptics Remain, Interest Rates a Key Factor
With skeptics still calling the broad stock market too expensive, criticism would ease only if companies were to produce higher profits or if interest rates were to fall. However, the Federal Reserve has warned that they may need to keep interest rates high for a while to ensure inflation is heading down to their 2% target.
Oil Prices and Currency Markets
In oil trading, U.S. benchmark crude lost 1 cent to $83.35 per barrel. Brent crude was 7 cents lower at $87.32 per barrel. The U.S. dollar was unchanged at 154.82 Japanese yen. The euro rose to $1.0706 from $1.0701.