Asia shares bounce on bright earnings, yen bruised | Reuters

TOKYO Asian stocks pulled away from eight-week lows on Wednesday, a day after solid corporate earnings sparked a rally in global equities while the yen struggled amid intervention warnings from Tokyo in the wake of the currency's rapid rise. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.4 percent in early trade, recovering from an eight-week low touched on Tuesday while Japan's Nikkei .N225 rose 1.0 percent.

Reuters May 11, 2016 00:54:54 IST
Asia shares bounce on bright earnings, yen bruised 
| Reuters

Asia shares bounce on bright earnings yen bruised 
 Reuters

TOKYO Asian stocks pulled away from eight-week lows on Wednesday, a day after solid corporate earnings sparked a rally in global equities while the yen struggled amid intervention warnings from Tokyo in the wake of the currency's rapid rise.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.4 percent in early trade, recovering from an eight-week low touched on Tuesday while Japan's Nikkei .N225 rose 1.0 percent.

"I'd think the markets are supported by lack of negative news flows. It's not that we have clear reason to be positive about the global economy but there may be a bit of unwinding in excessively pessimistic bets," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

On Tuesday, MSCI's broad gauge of global stocks .MIWD00000PUS climbed nearly 1.1 percent, its best session in about a month. The U.S. S&P 500 .SPX jumped 1.3 percent, tallying its best day in two months.

The index was led by 3.4 percent gains in Amazon to a record high following a bullish analyst report and 5.3 percent rise in Allergan (AGN.N) after the U.S. pharmaceutical company posted strong earnings.

In Europe, results from Credit Suisse (CSGN.S) and jewellery maker Pandora (PNDORA.CO) underpinned the market.

Greek shares .ATG also hit 2016 highs after euro zone finance ministers offered to grant Greece some debt relief, causing Greek 10-year bond yields GR10YT=TWEB to fall below 8 percent for the first time since early December.

Brazil's benchmark Bovespa stock index .BVSP gained 3.8 percent and the country's currency jumped after impeachment proceedings against President Dilma Rousseff came back on track, fuelling optimism that a new pro-market administration could take over on Thursday.

In the currency market, the yen stayed on the defensive, following two sessions of steep declines after Japanese officials stepped up their warning about intervening to weaken the currency.

The yen JPY= fell to 109.28 to the dollar, having slipped 3.4 percent from its 18-month high of 105.55 set on May 3.

The dollar got broad support from comments by a top Federal Reserve official last week, which kept alive otherwise diminishing hopes of a Fed rate hike following soft U.S. payrolls data on Friday.

New York Fed President William Dudley said that it was reasonable to expect the U.S. central bank would raise rates twice in 2016

The dollar's index against a basket of six major currencies .DXY =USD rose to a near two-week high of 94.356 on Tuesday and last stood at 94.234, having recovered 2.5 percent from its 16-month low touched Tuesday last week.

The euro EUR= traded at $1.1372, after slipping to a low of $1.13585, its weakest since April 29.

Oil prices were supported by crude supply outages in Canada, Nigeria and elsewhere.

Brent crude futures LCOc1 stood at $45.43 per barrel, having jumped 4 percent on Tuesday. U.S. crude futures CLc1 traded at $44.57 per barrel.

(Editing by Shri Navaratnam)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Moscow demands N.Korea's explanation on detenion of Russian yacht
| Reuters
World

Moscow demands N.Korea's explanation on detenion of Russian yacht | Reuters

MOSCOW A North Korean coast guard ship has detained a Russian yacht with a crew of five people on board, Russia's Foreign Ministry said on Saturday, adding it had sent a note to Pyongyang demanding explanation for the cause of the detention. The yacht was on its way from South Korea's port city of Pusan to Vladivostok in Russia's Far East when it was detained 80 miles (129 km) off the coast in North Korea's exclusive economic zone on Friday, the ministry said, giving no further detail

Republican Trump calls missing EgyptAir plane terrorist attack
| Reuters
World

Republican Trump calls missing EgyptAir plane terrorist attack | Reuters

WASHINGTON Republican presidential candidate Donald Trump said on Thursday the disappearance of an EgyptAir plane over the Mediterranean looked like an act of terrorism, making the link before authorities involved in the investigation did so. Authorities in Egypt and France said it was too soon to say what caused the Airbus A320 carrying 66 people to come down on its way from Paris to Cairo. In a morning Twitter post, Trump said: "Looks like yet another terrorist attack.

Gold hits three-week high on fading U.S. rate hike prospects
| Reuters
Fwire

Gold hits three-week high on fading U.S. rate hike prospects | Reuters

BENGALURU Gold hit a fresh three week high early Thursday, after jumping 1.5 percent overnight, helped by a weaker dollar and diminishing expectations of an interest rate hike by the U.S. Federal Reserve at its meeting next week. FUNDAMENTALS * Spot gold XAU= was nearly flat at $1,262.26 an ounce by 0054 GMT, having earlier hit $1,266.01, its best since May 18