Nifty futures, Asian indices up on Wall St gains

Hong Kong: Gains across the board in Asian markets this morning after some good economic data all around, from India yesterday to the US overnight to Australia this morning.

As at 7.30 am IST, Nifty futures are up in excess of seven-tenths of 1 percent, with the index looking to get back above the 4900 mark. Yesterday’s services PMI data gave some comfort to investors, and the market is still scenting a rate cut on 18 June. So, we’re looking at a positive, even robust start to the trading day.

The sentiment is much the same elsewhere across the Asia-Pacific region, where most indices have notched up appreciable gains at the start. This morning, Australia reported strong GDP growth of 4.3 percent (annualised) in the previous quarter, which has lifted up the mood.

Markets also drew strength from Wall Street overnight, where the markets broke a four-day losing streak to finish up a tick. There too, better-than-expected services PMI data helped.

But investors still have a wary eye out on Europe, where a meeting of the G7 finance ministers and central bankers overnight yielded some anodyne statements, but no real game-changing announcement. They are now looking ahead to a meeting of the European Central Bank later today, but they may be in for a disappointment if they expect the ECB to come to Spain’s rescue just yet.

Back home, the rupee is expected to open a trifle stronger today, which too should help investor sentiment.

Although the sentiment for now looks good, todayis a big data day across Europe, which could prove a bit of a dampener.

Overall, we’re likely to see a positive start to the day.

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