Asian stocks rebound from tumultuous week on positive US lead
Asian stocks rose Monday, taking a break from the global rout that has gripped investors since late January after US stocks gained on Friday and S&P 500 Index futures extended gains in Asia trading hours. Japan is closed for a holiday today.
Equities are rebounding after falling as much as 10 percent from their record high on Jan. 29 as investors pared positions amid rising US bond yields which shows they remain wary of further increases in global interest rates and inflation from current levels.
The MSCI Asia Pacific excluding Japan Index advanced 1 percent to 559.90 as of 11:28 a.m. in Hong Kong after its biggest weekly fall since Sept. 2011. Equity benchmarks in Hong Kong Korea and Taiwan led the gains.
“Markets have gone from overbought to oversold,” said Joshua Crabb, head of Asian equities at Old Mutual Global Investors. There is no reason for it to breakdown as fundamentals remain strong, he added.
Traders are keeping a close eye on Chinese stocks in the holiday-shortened week as they swing between gains and losses, after they led the recent sell-off.
- Google Search introduces new feature to reduce clicks
- Shots fired at US embassy in Ankara, no casualties
- BREAKING: Buddhist woman imprisoned for complaining about mosque's speaker
- Pontianak urges school closure for smog
- Colombia rescues 49 women from 'sexual slavery'
- Asian Games: Poor ticket handling after spectacular opening
- BREAKING: Another 7-magnitude quake hits Lombok
- UK B&B becomes unlikely site of 'pilgrimage' for Japanese anime fans
- Iran unveils first domestic fighter jet
- Asian Games: Flags rise again for swimming medalists after Sun's demand